Chief Economic Advisor on Indian Economy: Chief Economic Advisor (CEA) V. Ananth Nageswaran said on Friday that the country’s economic growth rate is expected to be more than 6.8% in the current financial year. He said that the main reason for this has been the increase in consumption due to reduction in GST rates and relief in income tax.

In the economic review presented in Parliament in January, the real GDP growth rate for the financial year 2025-26 was estimated to be between 6.3 to 6.8%. Addressing a private news channel’s program ‘Global Leadership Summit 2025’, Nageswaran said that he easily sees a growth rate above 6.8%.

The country’s economy will boom

He further said that in August there were concerns that the growth rate may remain at the lower end of the 6 to 7% range, but now it is clear that it will go above 6.5% and possibly even above 6.8%. However, before estimating 7%, we will have to wait for the second quarter data.

It is noteworthy that India’s GSP growth rate in the first quarter of the current financial year was 7.8%. This growth was mainly possible due to the better performance of the agriculture sector and the strength of sectors like trade, hotels, financial services and real estate. Earlier, the highest GDP growth of 8.4% was recorded in the January-March 2024 quarter. At the same time, China’s growth rate was 5.2% in the April-June quarter. Thus, India still remains the fastest growing large economy in the world.

India-US deal expected soon

Nageswaran said that if India-US bilateral trade agreement (BTA) is reached, it will provide additional impetus to economic growth. He said that if a solution is found on the trade front, the growth forecast may go higher. Also expressed hope that the agreement would be completed soon, although no deadline was given for this.

At present, America has imposed a high tariff of 50% on goods imported from India from August 27, with an additional penalty of 25% for purchasing crude oil from Russia. While imposing this customs duty on August 7, US President Donald Trump had said that India has harmed American interests by continuing to import oil from Russia and maintaining trade barriers.

Also read: Due to these 4 reasons, the market closed with decline for the third consecutive day, know how it will be on November 10

V anantha nageswaran on dollar: Amidst the ongoing tariff tension with America, the question arises whether India is looking for a US dollar option. Chief Economic Advisor V. Anant Nageswaran has made it clear that India is not thinking of any kind on the use of any other currency as an alternative to US dollar in global trade.

In response to a question on Wednesday, the Chief Economic Advisor said that India is not a part of any such initiative. However, at the BRICS summit held in Kazan, Russia in October last year, India and other BRICS countries considered cross -border payment disposal in local currency. Along with this, it was agreed to bring a special ‘BRICS Mudra’.

There is no alternative to dollar at the moment

Nagswaran says that there is no practical option of US dollar at this time. Its rise may take a long time. He informed that the central banks maintain their foreign exchange reserves on a diverse basis. Also, the Reserve Bank has also increased its stake in the purchase of gold in the last few years. The Chief Economic Advisor said that therefore, the structure of foreign exchange reserves including gold is constantly being given attention.

What was said at the BRICS conference?

The manifesto of the 16th BRICS Summit held in October 2024 stated that there is a need for fast, low-cost, more efficient, more efficient, transparent, safe and inclusive border payments based on the principle of reducing business obstacles and discriminating access. The manifesto also stated that the use of local currencies in financial transactions between BRICS countries and their business partners would be welcomed.

BRICS is a group of rapid emerging economies in the world, including Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran and United Arab Emirates (UAE). Its purpose is to promote the shared view of the emerging economies on multilateral forums.

Also read: Larry Erison now pushed Elon Musk to second place in the list of rich of the world