India’s Chief Economic Advisor, V Anantha Nageswaran, has expressed confidence that the country will continue navigating global economic pressures with resilience. Speaking at an AIMA event on September 10, he emphasized that despite rising tariffs and geopolitical uncertainties, India is more likely to witness sustained growth rather than downturns.
Nageswaran dismissed speculation about India considering alternatives to the US dollar, noting that such initiatives are not on the government’s agenda. Instead, he highlighted the country’s recent economic performance. India’s real GDP climbed by 7.8% in the first quarter of FY26, a surge powered by strong domestic activity instead of just moderating inflation. Early second-quarter data from July and August indicate that this momentum is holding, reinforcing expectations of steady progress.
According to him, India has become the only G20 economy to maintain consistent growth for four years after the pandemic. This resilience, he explained, stems from structural reforms introduced over the last decade. Key policy changes — from the Insolvency and Bankruptcy Code and the rollout of GST to the Real Estate Regulation Act and banking consolidation — have begun to deliver visible benefits. These measures, alongside tax process improvements and GST rationalization, have eased business operations and boosted employment.
Global institutions are also taking note. Fitch Ratings recently upgraded India’s growth forecast for FY26 to 6.9%, up from 6.5% earlier, citing robust domestic demand and favorable financial conditions. This revision followed India’s better-than-expected GDP expansion of 7.8% in Q1 FY26, which surpassed the previous quarter’s 7.4% growth.
Economists suggest that India’s economic trajectory reflects not only cyclical momentum but also long-term structural strength. With reforms continuing to take hold and consumer demand driving expansion, India is well-placed to withstand global uncertainties. While challenges from global trade tensions and geopolitical risks persist, the CEA’s outlook underscores optimism that India’s growth path remains secure and promising.
