Indian Economy News: Chief Economic Advisor V. Anant Nagswaran on Friday expressed confidence in the current financial year amidst the risks due to high American fees that the Indian economy would grow at a rate of 6.3 to 6.8 percent in the current financial year. He said that domestic demand remains strong but imposing an import duty of 50 percent on Indian products in the US may cause some adverseness to increase estimates. He said that the effects associated with the fee may be limited to the second quarter of the financial year.
Nagswaran was interacting after the growth rate of 7.8 percent of the gross domestic product (GDP) growth rate in the April-June quarter of FY 2025-26. He said, he said that the high import duty imposed by the US will prove to be ‘temporary’ as the two countries are negotiating on the removal of 25 percent duty imposed as fine and then on bilateral trade agreement.
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He said, he said there is some uncertainty about the additional fee in relation to Russian crude oil, but the conversation is going on in general and hopefully we will see some kind of solution in the near future. Nagswaran said, we believe that the growth target for the current financial year will remain within 6.3–6.8 percent, especially in view of the strong performance of the economy in the first quarter.
The country’s GDP has increased at a rate of 7.8 percent in the April-June quarter, which is much higher than the Reserve Bank’s 6.5 percent estimate. He said that there is no possibility of a major decline in the country’s GDP growth estimate. He said that the effects associated with the fee may be limited to the second quarter of the financial year. However, the US fee may see some negative risk in the event of longer apply.
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Several private sector estimates states that India’s economic growth rate may see a decline of from 0.2 percent to one percent due to high American charges. The economic review introduced in Parliament in January estimated the actual growth rate of 6.3 to 6.8 percent for the financial year 2025-26.
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The Chief Economic Advisor hoped that the overall demand will remain in the upcoming quarters as the GST rate is likely to be cut and the festive weather will encourage consumption. The GST Council is expected to decrease in a meeting to be held in the meeting of the GST Council in early September for reducing the tax slab of the Goods and Services Tax (GST) from four to two slabs. It is proposed to keep only five percent and 18 percent of 18 percent. (Input agency)
Edited by: Chetan Gour
