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Indian economy to grow 6.3-6.8% in FY26, US tariffs pose downside risk: Nageswaran

PTI
Updated: August 29th, 2025, 19:36 IST
in Business
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CEA V Anantha Nageswaran

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New Delhi: Chief Economic Advisor V Anantha Nageswaran  Friday exuded confidence that Indian economy will grow at a rate between 6.3 and 6.8 per cent in the current fiscal on strong domestic demand, even though there would be some downside risks to the projections due to steep 50 per cent US tariffs.

Briefing reporters after the announcement of first quarter GDP numbers which came in at 7.8 per cent, he said that high tariffs are expected to be “short-lived” as both the countries are in talks for removal of the 25 per cent penal tariff and a subsequent bilateral trade deal.

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“Despite the reciprocal tariffs and penal tariff (imposed by US), and after seeing the resilience of Q1 growth we are retaining the growth rate projections for current fiscal at 6.3-6.8 per cent,” Nageswaran told reporters here.

He said that the downside to GDP growth forecast for the current fiscal is unlikely to be significant.

The Economic Survey tabled in Parliament in January had projected real economic growth at 6.3-6.8 per cent for FY26.

PTI

Tags: EconomyIndiaTariffUSV Anantha Nageswaran
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