NEW DELHI– Chief Economic Adviser V. Anantha Nageswaran dismissed speculation on Wednesday that India is working on an alternative currency to the U.S. dollar, saying no such plans are under consideration.
Despite tariff disputes and global uncertainties, Nageswaran said the Indian economy is on solid ground and better positioned for positive developments than shocks.
He noted that the combined effect of U.S. tariffs and recent GST reforms will trim GDP growth for fiscal 2026 by 20 to 30 basis points. Growth is currently projected between 6.3 percent and 6.8 percent.
The CEA credited India’s resilience to a decade of structural reforms, including major digital and physical infrastructure upgrades and the formalisation of small and medium enterprises. He highlighted the Insolvency and Bankruptcy Code, Goods and Services Tax, Real Estate Regulation Act, and consolidation of public sector banks as key measures that strengthened the business environment.
Nageswaran also pointed to recent changes in tax administration and GST adjustments, saying they have boosted compliance and positioned companies for long-term gains. He stressed that such reforms are foundational for sustained growth and should not be seen as incremental steps.
India’s recent sovereign credit rating upgrade — the first in nearly 20 years — reflects growing international confidence in its economic management, Nageswaran said. He added that the government remains on track to meet its 4.4 percent fiscal deficit target this year.
Looking ahead, Nageswaran said future reforms will require stronger collaboration between government and private enterprise. He urged businesses to focus on innovation and efficiency rather than protectionist strategies, emphasizing that lasting growth depends on expanding the economic pie instead of redistributing it.
India’s GDP grew 7.8 percent in the first quarter, and the government’s move to simplify the GST structure is expected to inject about Rs 50,000 crore into the economy, providing a boost to domestic consumption. (Source: IANS)
