GG News Bureau
New Delhi, 18th June: Chief Economic Advisor (CEA) V. Anantha Nageswaran has said that India remains a rare “bright spot” in an increasingly volatile global landscape, citing the nation’s consistent economic performance despite rising geopolitical tensions and economic disruptions worldwide.
In an interview with PTI, Nageswaran noted that global challenges—including ongoing military conflicts in West Asia, the Ukraine-Russia war, India-Pakistan tensions, and tariff battles—have intensified since 2022, creating a more unpredictable and difficult environment for economic growth globally.
“You could say that downside risks are higher than the potential for upside surprises,” the CEA remarked, stressing that the strain is not India-specific but a broader global phenomenon.
Highlighting India’s relative resilience, Nageswaran pointed out that the country has maintained solid growth momentum, emerging strongly from the COVID-19 crisis. “We have reduced the fiscal deficit and brought down government debt levels,” he said, attributing these fiscal improvements to increased investor confidence—reflected in the narrowing yield gap between Indian and US 10-year government bonds.
Despite a challenging global climate, India’s current GDP growth of around 6.5% is a noteworthy accomplishment, Nageswaran said. “Given how tough the global climate has become since the 2008 financial crisis, maintaining this rate is no small feat.”
While the government aims to push growth above 7%, the CEA cautioned that the world no longer benefits from the benign economic conditions of the past. He emphasized that sustaining a 6.5% growth rate in today’s environment is itself a strong result, acknowledging the government’s ongoing structural efforts to support higher growth.
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