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Chief Economic Advisor V. Anantha Nageswaran mentioned that if the tariffs on India stayed on, there can be a drop in exports to the U.S. File | Photo Credit: ANI
The extra 25% tariff imposed by the U.S. on Indian merchandise for the nation’s purchases of Russian oil got here into impact in August, bringing the overall quantity of levy imposed on New Delhi to 50%.
Speaking at an interactive session organised by Bharat Chamber of Commerce in Kolkata, Mr. Nageswaran mentioned, “Underneath the surface, conversations are going on between the two governments. My hunch is that in the next eight to ten weeks, we will likely see a solution to the tariffs imposed by the U.S. on Indian goods.”
He mentioned that if the tariffs stayed on, there can be a drop in exports to the U.S.
Terming India as an aspirational lower-middle-income economic system, Mr. Nageswaran mentioned actual Gross Domestic Product (GDP) development within the first quarter of the present monetary yr was 7.8%.
Post the Covid-19 pandemic, the Indian economic system grew quicker than many nations, he mentioned.
On India’s financial development
The development in manufacturing, companies and agriculture will contribute to financial progress in an effective way within the subsequent two years, Mr. Nageswaran mentioned, including that consumption and investments will proceed to anchor development for the nation.
According to him, the debt-to-GDP ratio in India is nice. With per USD of debt, the nation generated extra GDP than different nations, which reveals environment friendly utilisation of capital within the economic system.
He additionally mentioned that rural demand stays resilient within the economic system, and concrete demand is gaining traction.
The latest aid in GST charges will give extra disposable earnings within the palms of customers, and concrete consumption is prone to go up, the CEA mentioned.
Also learn: GDP development in Q1 quickens to five-quarter excessive of seven.8%, buoyed by cross-sector power
Credit to the MSME sector is rising whereas advances to the massive business are present process a structural change, he mentioned, including that within the current day, avenues of useful resource mobilisation are ample.
According to Mr. Nageswaran, the exterior sector of the economic system stays resilient, regardless of the worldwide headwinds. “Trade continues to be robust in the current financial year”, he mentioned, including that the international change reserves are wholesome.
The present account deficit is benign and narrowed all the way down to 0.2 per cent of the GDP within the first quarter of the 2025-26 fiscal, he mentioned. “The rupee is depreciating in opposition to the U.S. greenback. Given the underlying power of the economic system, I’m extra inclined to imagine that within the longer run, the rupee is prone to maintain its worth and change into stronger,” the CEA mentioned.
Delineating the coverage priorities of the federal government, Mr. Nageswaran mentioned that there’s a continued emphasis on authorities capital expenditure, incentives to spice up non-public funding and systemic deregulation. He mentioned the availability of bodily infrastructure, like ports and airports, has elevated, which won’t “overheat the economy when growth takes place”.
Referring to India’s commerce with China, the CEA mentioned that largely capital and intermediate items are imported from the neighbouring nation. “The Indian private sector needs to do more on innovation and increase spending on R&D,” he mentioned.
On the affect of synthetic intelligence (AI), he mentioned that it has been marginal thus far. “Coding-level jobs will be under threat, but not bad from an employment perspective. People have to upskill themselves,” he mentioned.
Published – September 18, 2025 04:36 pm IST
