Chief Economic Adviser V. Anantha Nageswaran on Wednesday dismissed speculations that India is exploring an alternative currency to the US dollar, stating that no such plans are under consideration.
Nageswaran added that despite tariff disputes and geopolitical uncertainties affecting global trade, the Indian economy is well-positioned for positive developments rather than shocks. “India’s economy remains on a firm footing,” he affirmed.
The CEA noted that the net impact of US tariffs and recent GST reforms is expected to reduce India’s fiscal year 2026 GDP growth by only 20–30 basis points. The growth is currently projected to be between 6.3 per cent and 6.8 per cent.
He credited the economy’s resilience to a decade of structural reforms, including upgrades in digital and physical infrastructure and the gradual formalisation of small and medium enterprises.
Nageswaran highlighted key reforms such as the Insolvency and Bankruptcy Code, Goods and Services Tax, Real Estate Regulation Act, and public sector bank consolidation, which have strengthened the business environment. Recent tax administration changes and GST rate adjustments have also improved compliance for companies.
“These measures are foundational for sustained growth and should not be viewed as merely incremental changes,” he said.
He further pointed out that India’s recent sovereign credit rating upgrade—the first in nearly 20 years—reflects increased global confidence in the country’s economic management.
The government is on track to achieve its fiscal deficit target of 4.4 per cent for the year, Nageswaran added.
The CEA emphasised that future reforms must involve collaboration between government and private enterprise. He urged businesses to prioritise innovation and efficiency over protectionist measures, noting that sustainable growth relies on expanding the economic pie rather than redistributing it.
India’s Q1 GDP growth reached 7.8 per cent, and the government’s simplification of the GST structure is expected to release about Rs 50,000 crore into the economy, further boosting domestic consumption.
-IANS