Indian Economy Poised for Strong Growth in Coming Quarters: CEA Nageswaran

Rapid Summary

• Chief Economic Adviser (CEA) V.Anantha Nageswaran highlighted India’s robust economic growth at a virtual event organized by the Indian Chamber of Commerce.
• India reported 7.8% GDP growth in Q1 FY26 (April-June), the fastest pace in five quarters, mainly driven by agriculture and service sectors.
• Agriculture sector grew by 3.7%, compared to 1.5% in FY25’s Q1, supported by favorable monsoons.
• U.S tariffs on Indian goods include steep duties (50%), adding pressure on exports; a penalty for Russian crude oil purchases is also included.
• Conversations are ongoing between india and U.S. stakeholders to resolve tariff issues, with hopes for a resolution soon.
• Fiscal prudence: Reduction of fiscal deficit from 9.2% in 2021 to an estimated 4.4% this year has lowered borrowing costs substantially.
• Manufacturing GVA rose by 10.1% (nominal) and real GDP reflected economic strength at full-year targets near union Budget assumptions of nominal GDP growth at ~10%.
• Growth resilience attributed to policy measures like tax cuts, job creation incentives, GST reforms, free trade agreements being pursued with UAE, UK & others.

indian opinion Analysis

India’s strong Q1 GDP performance underscores it’s status as the fastest-growing major economy globally amidst slowed global recovery rates elsewhere such as China’s modest expansion reaching comparative estimates higher openness slowing costs..Easing present showing