Current indicators show India's economy is doing well: CEA Nageswaran

New Delhi, May 5 (IANS) Chief Economic Advisor (CEA) V. Anantha Nageswaran has highlighted that current indicators show the Indian economy is continuing on a high growth path despite the global challenges.

Speaking at an event at Ashoka University, Nageswaran said, "India's economy is in good shape despite challenging global environment. While the final number for FY25 will be available in May, current indicators suggest we are progressing well."

The country’s Chief Economic Advisor listed energy affordability and energy transition employment generation with the rise in manufacturing and small and medium enterprises as priority areas for the country. Besides, artificial intelligence, education and skilling of the country’s workforce would drive growth, he added.

He emphasised on the need to maintain macroeconomic stability, which entails keeping inflation in check, while targeting inclusive growth as the country moves ahead.

NITI Aayog Vice Chairman Suman Bery, in his address at the event, emphasised India's long-term vision of becoming a developed, high-income country by 2047.

"Over the last three decades, India has achieved a consistent annual growth rate of 6.5 per cent, and I think it's an impressive achievement. It showcases both institutional agility and a certain institutional maturity in India," he said.

Bery stated that the global turmoil could throw up opportunities for India. He highlighted the potential for India to leverage its demographic dividend, technology and geopolitical shifts to spur economic growth.

India continues to remain the world’s fastest growing major economy and the only country expected to clock over 6 per cent growth in the next two years, according to an IMF report released last month.

IMF chief economist Gita Gopinath said, “Our April 2025 World Economic Outlook projects significantly weaker global growth at 2.8 per cent for 2025 with growth downgrades for 127 countries making up 86 per cent of world GDP.”

However, the outlook report pegged the Indian economy to grow at 6.2 per cent in 2025 and 6.3 per cent in 2026 which is over 2 percentage points above second ranking China’s economic growth forecast at 4 per cent for 2025 and 4.6 per cent in 2026.

The US, which has triggered the tariff turmoil across the globe, is expected to see its GDP growth slowing to 1.8 per cent this year, which will is expected to decline further to 1.7 per cent in 2026, according to the IMF report.

--IANS

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