India not pushing for an alternative to US dollar: CEA Nageswaran

New Delhi, Sep 10 Chief Economic Adviser V Anantha Nageswaran on Wednesday dismissed speculations of India's involvement in creating an alternative currency to the US dollar, saying that no such plans are being considered.

Nageswaran added that in spite of tariff disputes and geopolitical uncertainty affecting global trade, the Indian economy is better placed for good news rather than shocks. India’s economy remains on a firm footing, he affirmed.

The CEA said that the net impact of US tariffs and recent GST reforms will be a reduction of 20 bps or 30 bps on India's fiscal year 2026 GDP growth. The growth is currently projected to be between 6.3 per cent and 6.8 per cent.

Nageswaran credited this resilience to a decade of reforms that included digital and physical infrastructure upgrades with the gradual formalisation of small and medium enterprises.

According to the CEA, reforms including the Insolvency and Bankruptcy Code, Goods and Services Tax, Real Estate Regulation Act, and public sector bank consolidation have improved the business environment. Recent changes in tax administration and adjustments to GST rates have improved compliance for companies.

He said that these measures are foundational for sustained growth and should not be considered as merely incremental changes.

Nageswaran highlighted that India's recent sovereign credit rating upgrade, the first increase in nearly 20 years, indicates increased global confidence in the nation's economic management.

The government is on track to achieve its 4.4 per cent fiscal deficit target for the year, he added.

The CEA emphasised that future reforms must involve collaboration between government and private enterprise. He urged businesses to prioritise innovation and efficiency over protectionist strategies, warning that sustainable growth relies on enlarging the economic pie rather than redistributing it.

India’s Q1 GDP growth reached 7.8 per cent, and the government’s decision to simplify the GST structure is expected to release about Rs 50,000 crore into the economy and boost domestic consumption.

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