India’s GDP Growth: India, which is facing high American tariffs, will not have any negative impact on its economic growth in the current financial year. Rather, the economy will gain momentum and grow stronger. This is what Chief Economic Advisor (CEA) V. Ananth Nageswaran has to say. They estimate that India’s gross domestic product (GDP) can reach 7% in the financial year 2025-26 on the basis of base year 2011-12.

India moving towards ‘A’ rating

During the India Maritime Week (IMW), Nageswaran said that recently all three major global rating agencies have made India’s credit rating outlook positive. If the country continues to move forward in the current economic direction, India may soon join the ‘A’ rating category. Academician-turned-policy advisor Nageswaran said the resilience of the Indian economy, coupled with the policies of the government and the Reserve Bank of India (RBI), is keeping it in a ‘comfortable state’.

He said that despite global uncertainties and challenges like tariffs this year, India’s economic condition remains strong. Income tax relief, reforms in GST structure and other policy steps have helped in taking the growth rate of the current financial year to about 7%.

Nageswaran had estimated in February that the GDP growth rate in the current financial year could be 6.3%. Later, it was reduced to 6% considering the US duty effect. But, they now believe that timely policy steps taken to increase demand and encourage investment have put the economy in a strong position.

Support received from RBI’s steps

Answering the questions raised on the slowdown in bank loan growth, Nageswaran said that it is important to look at the total resource mobilization in the economy. It also includes capital raised through non-bank lenders, commercial papers, certificates of deposit and equity markets. Citing RBI data, he said that there has been an annual increase of 28.5% in total resource mobilization in the last six years.

In the same program, International Financial Services Center Authority (IFSCA) Chairman K. Rajaraman said that shipping, ports and marine industry will need funding of more than $300 billion in the next few years. GIFT City can prove to be an effective platform to mobilize this.

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