Despite Trump’s tariff, the Indian economy will increase at a speed of 6.3 to 6.8 percent: CE
New Delhi: India’s economy will grow at the rate of 6.3 to 6.8 per cent on the basis of strong domestic demand in this financial year (FY26). This was said by Chief Economic Advisor V. Anant Nagswaran on Friday. He said that despite the 50 percent tariffs imposed by the US, India’s growth would not have much impact.
Great growth of 7.8% in the first quarter
Nagswaran said that in the first quarter of April-June 2025, India’s GDP rose at a speed of 7.8 per cent, the fastest among the last 5 quarters. This growth was mainly with the help of farming performance and the help of areas such as business, hotels, financial services and real estate. In January-March 2024, India’s GDP grew at an 8.4 per cent rate, which was the fastest growth of the time.
Trump’s tariff will have less effect
US President Donald Trump has recently imposed heavy tariffs on some India’s exports, such as textile industry. But Nageswaran expressed confidence that these tariffs will not last long. Negotiations are underway between India and the United States for the removal of 25 per cent of punitive tariffs and bilateral trade agreement. He said, ‘Given the strong growth of the first quarter, we are maintaining an estimate of 6.3-6.8 per cent growth. There will be no major impact on growth due to tariffs.
The same estimate in economic survey
The Economic Survey presented in Parliament in January also estimated a real economic growth of 6.3–6.8 per cent for FY26. Nagswaran said that the demand in the coming quarters will be strong. The possibility of cutting GST rates and the festive season will further strengthen consumption. According to data from the National Statistics Office, the farming region recorded a growth of 3.7 per cent in this quarter, which was 1.5 per cent in the same quarter last year. At the same time, the growth of the manufacturing sector was 7.7 percent, which is slightly better than last year’s 7.6 percent.
India is world’s fastest growing economy
It is interesting that India remains the fastest growing major economy in the world. China’s GDP growth stood at 5.2 per cent in April-June 2025, while India achieved 7.8 per cent speed. Nagswaran said that India’s economy is standing on a strong foundation. India is set to face challenges on the basis of domestic demand and government policies. The possible cuts in the festive season and GST are expected to lead the economy to gain further speed.
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