India’s growth strong but risks rising: CEA Nageswaran ​

Washington, April 15 India’s economic growth remains robust, but rising global uncertainties could weigh on the outlook in the coming months, Chief Economic Advisor (CEA) V. Anantha Nageswaran said on Wednesday.​

Speaking at the US-India Economic Forum 2026, Nageswaran said India has sustained strong growth in recent years, but cautioned that external risks have intensified.​

“We shouldn’t underestimate or understate the wide range of uncertainty that prevails,” he said, referring to global conflict and economic volatility.​

India’s GDP growth for the year ending March 2026 is estimated at 7.6 per cent, continuing a streak of over 7 per cent growth in the post-COVID period.​

“Post Covid, India has enjoyed seven plus per cent real GDP growth, and that’s a very big achievement in a world where growth has become scarce,” he said.​

He noted that the momentum entering the new financial year remains strong, with agriculture, manufacturing and services sectors all performing well.​

However, Nageswaran said the global environment has changed sharply in recent weeks. “February 28 morning, everything changed,” he said, referring to the escalation of geopolitical tensions.​

The risks include higher energy prices, supply disruptions and volatility in capital flows, all of which could affect growth, inflation and external balances.​

Despite these challenges, he emphasised that India is well-positioned to manage the impact. “We are facing them with a position of macroeconomic strength,” he said.​

India’s growth has been supported by strong domestic demand, infrastructure investment, and policy reforms that have improved supply-side capacity.​

Nageswaran also pointed to progress in fiscal consolidation, with deficits moderating even as public investment has increased significantly.​

At the same time, he said policymakers must remain vigilant and respond quickly to emerging risks.​

“To some extent… a slight perturbation to the business-as-usual forecast will probably do a disservice rather than being helpful,” he said, underscoring the need for realistic assessments.​

India’s ability to sustain high growth will depend on managing external shocks while continuing structural reforms and investment.​

India is currently the world’s fourth-largest economy and is targeting sustained high growth to achieve its long-term development goals.

--IANS

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor