India's economy performing better than expected: CEA V Anantha Nageswaran

Chief Economic Advisor (CEA) V Anantha Nageswaran said on Wednesday that India's economy has been performing better than expected over the past few months and will grow by over 6.7 per cent this year. He also said that apprehensions of a slowdown have also eased significantly.

"The economy is doing as well as it can and better than what we feared a couple of months ago," he told Business Standard.

He said due to global uncertainties, including Donald Trump's tariffs on India, growth projections were around 6 per cent. However, now, he said, analysts are wondering if India's GDP growth will cross the 7 per cent mark.

V Anantha Nageswaran said that for the financial year 2025, the growth rate could be between 6.7 and 6.8 per cent.

He said that the government's rationalisation of the income tax and GST has boosted consumption and private capital expenditure.

He said that despite external uncertainties, the government's efforts to improve ports, highways, power generation, and airports have improved demand.

He also said that the Indian currency will become stronger in the coming years.

He urged banks to adopt a stronger stance against rising digital fraud.

"Without that, people will lose their depositors and trust and start keeping money under their mattresses. Over time, it will erode the bankability of banks," he said.

In August, US President Donald Trump imposed 50 percent tariffs on Indian exports to the United States over New Delhi's oil and weapons trade with Russia. The two sides have been negotiating a trade agreement to ease trade tensions.