India Shows Economic Resilience Amid Global Uncertainty, But West Asia Tensions Pose Risk: CEA

(MENAFN- KNN India) New Delhi, Jun 18 (KNN) India has demonstrated economic resilience by sustaining steady growth despite rising global economic and geopolitical uncertainties, Chief Economic Adviser (CEA) V. Anantha Nageswaran said on Wednesday.

Speaking to ANI in Thiruvananthapuram, Nageswaran remarked that in an increasingly complex global environment marked by unfavourable economic and geopolitical conditions, India's estimated GDP growth of 6.5 percent for 2024-25 reflects a“creditable achievement.”

For 2025-26, the government projects growth in the range of 6.3 percent to 6.8 percent.

He noted that while India had grown at a faster pace of 8-9 percent during the high-growth phase of 2003-08, the current growth performance is relatively more significant given the subdued global backdrop.

“To achieve 6.5 percent on a steady basis in this environment is a creditable achievement. India is poised to maintain that track record,” he said.

Highlighting the impact of the Production-Linked Incentive (PLI) scheme, the CEA said it had significantly bolstered India's manufacturing capacity and advanced the goal of self-reliance.

“The PLI scheme has done well. From nothing to today, we are exporting between USD 10 billion and USD 15 billion worth of mobile phones,” he said.

However, Nageswaran cautioned that geopolitical developments, particularly in West Asia, remain key risks to the outlook.

“The current conflict between Israel and Iran may not be too good for us. In the last week, crude oil prices have risen to about USD 73–74 per barrel. This raises essential risks for India,” he said.

He drew a parallel to the Russia–Ukraine conflict in 2022, when oil prices crossed USD 100 per barrel, yet India managed to sustain a 7 percent growth rate-underscoring the economy's capacity to absorb external shocks.

On trade policy, Nageswaran advised a balanced view, stating that tariff changes should be evaluated in the context of global competitiveness.

“Ultimately, it also matters what tariff rates India's competing countries get. It is premature to say that tariffs will make our exports difficult for now,” he said.

(KNN Bureau)

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