India Better Prepared for Global Shocks, Says Chief Economic Advisor V. Anantha Nageswaran

According to the Chief Economic Advisor, V. Ananth Nageswaran, the external situation in India has improved tremendously. The fundamentals of the Indian economy in general are better placed to face global surprises. During an event, Nageswaran explained that the risks associated with the external situation have fallen significantly.

Moreover, the Reserve Bank of India has less need for using its foreign exchange reserves to prop up the rupee currency. Also, according to Nageswaran, the worst time in terms of external factors has passed for India. All these improvements were due to the effective management of the economy and timely measures taken amid the global recession. Nageswaran supported the GDP growth projection of 6.6 percent made by the RBI for 2026-27.

To achieve the goal of a "developed India," the country will need to maintain an economic growth rate of around eight percent for a long time, Nageswaran said. However, he also mentioned some potential challenges. If geopolitical tensions in West Asia persist for a long time, economic growth could be impacted. Growth rates will also be impacted if crude oil prices remain consistently above $100 per barrel. In such a situation, the growth rate could decline to around six percent.