Chief Economic Advisor V Anantha Nageswaran expressed confidence on Friday that India’s economy is likely to expand between 6.3 and 6.8 per cent in the current fiscal year, driven by robust domestic demand, despite potential risks from steep US tariffs of up to 50 per cent.
Speaking to reporters after the release of first-quarter GDP figures, which showed 7.8 per cent growth, he noted that the high tariffs are expected to be “short-lived” as India and the US are negotiating the removal of the 25 per cent penal tariff and a broader bilateral trade agreement.
“Despite the reciprocal and penal tariffs imposed by the US, and given the resilience seen in Q1 growth, we are maintaining the growth projections for this fiscal at 6.3-6.8 per cent,” Nageswaran said in Delhi, adding that any downside risk to the GDP forecast is likely to be limited.
The Economic Survey presented in Parliament in January had similarly projected real economic growth at 6.3-6.8 per cent for FY26. Nageswaran also expressed optimism that overall demand will remain strong in the coming quarters, supported by a potential GST rate reduction and increased consumption during the festive season.
