Chief Economic Advisor V Anantha Nageswaran reaffirmed that the Indian economy was on track to grow at 6.3-6.8 per cent in the current fiscal year FY2026. The proposed GST reforms would lift local consumption and retail activity, despite the US tariffs bearing down on the country.
Nageswaran, the Centre’s economic advisory head, briefed the media on Friday while releasing the April-June GDP data from the Ministry of Statistics & Programme Implementation.
The CEA also assured that the 25 per cent secondary tariffs imposed by US President Donald Trump are currently being negotiated and that their effect would be “short-lived”.
“There is some uncertainty with respect to the additional tariff with respect to the Russian crude oil would last, but in general conversation is going on, and there is expectation that we will see some kind of a resolution in not so distant future,” he said. “We do believe that the growth target for the current fiscal, especially in lines of strong showing by the economy in the first quarter, we retain the 6.3-6.8 per cent range for the current fiscal.”
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According to the latest data released by the Centre, India’s economy grew at 7.8 per cent in the first quarter of FY2026 (April to June 2025), surpassing the RBI estimates of 6.5 per cent.
Nageswaran’s latest outlook matched the Centre’s earlier projections of real economic growth of 6.3-6.8 per cent for FY2026 in The Economic Survey tabled in parliament in January.
“There could be some downside risks to the projections if the tariffs remain for a longer period, but we are hopeful it will be resolved sooner,” he added.
The Centre has wagered its bets on the upcoming GST reforms following the upcoming GST Council meeting on September 3-4 2025.
Global uncertainties will not affect India
On the same day, Minister of State for External Affairs Kirtivardhan Singh said that trade tensions, including the latest 50 per cent tariffs imposed by the US on Indian goods, would not affect the Indian economy. ”Wherever we get a good market, we will adopt it and move forward strongly,” said Singh. “The countries of the [Global South] now consider us a leader,” he added.
