India a 'bright spot' amid global uncertainty, says CEA Anantha Nageswaran

India remains a rare "bright spot" in a world facing growing uncertainty, said Chief Economic Advisor V Anantha Nageswaran, pointing to the country's steady economic performance despite ongoing global challenges.

Rising global uncertainties

Talking to PTI, the CEA said that while conflicts and disruptions have been part of the global scene since 2022, they have become more intense and unpredictable, making the overall environment - whether political, economic, or security-related - far more difficult for growth across the world.

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"You could say that downside risks are higher than the potential for upside surprises," Nageswaran said, when asked for his views on the impact on the Indian economy due to rising global uncertainties caused by military conflicts in West Asia, between Ukraine and Russia, and also between India and Pakistan, as well as tariff wars.

He said this is not just a problem for India - it's affecting many countries, almost the entire world economy.

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'Bright spot'

Even under these circumstances, Nageswaran said he believes that India does indeed stand out as a relatively "bright spot".

Noting that India's economy has shown resilience since the COVID-19 pandemic, achieving strong growth while also improving its fiscal health, he said, "We have reduced the fiscal deficit and brought down government debt levels."

According to him, this has helped build confidence among investors, as reflected in the narrowing gap between Indian and US 10-year government bond yields, "something we've never seen at this level before."

The CEA said India's current growth of around 6.5 per cent is a significant achievement under the circumstances.

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Growth amid challenges

Given how tough the global climate has become since the 2008 financial crisis, maintaining this rate is no small feat, he said.

While the government continues efforts to raise the growth rate to 7 per cent and beyond, Nageswaran cautioned that the world is no longer operating under the same favourable conditions it once did.

The CEA said that the government is doing the hard work to grow faster, but even maintaining a 6.5 per cent growth rate was a solid outcome in today's world.

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(with inputs from agencies)