Our Bureau
New Delhi
India’s economy is making progress in recent times and has become the fourth largest economy in the world as they took over Japan just a few weeks back. V Anantha Nageswaran, the Chief Economic Advisor (CEA), has expressed that he thinks India is a rare ‘bright spot’ while the world faces uncertain times.
The CEA, Mr. Nageswaran revealed that the global economy for the past three years since 2022 has been in a challenging position. The trends have become more intense and unpredictable in recent times and that has made the environment across the globe – whether political, economic or security-related – has been a lot more difficult in the last few years.
“To some extent, one can say that the global environment today–whether political, economic or related to security–has become considerably more complicated and more challenging for growth, not just for India but for several countries, almost for the entire world economy,” the CEA said.
The CEA was asked what he thinks about the impact that the country’s economy will face due to the rise in global uncertainties. Also, he was asked what he thinks is going to be the impact of military conflicts in West Asia, between Ukraine and Russia, and also between India and Pakistan, as well as tariff wars. Mr. Nageswaran stated, “You could say that downside risks are higher than the potential for upside surprises.”
He emphasised that the Indian economy has been very resilient ever since the COVID-19 pandemic. The country has shown strong growth while improving its economy. He stated that India has substantially reduced the fiscal deficit and have reduced the debts of the governments majorly.
The CEA has also stated that the country’s steady growth has built trust amongst the investors as the gap between the Indian and US 10-year government bond yield is narrowing. He stated that India’s current growth of around 6.5% is a major achievement under these circumstances.
