New Delhi: Despite rising global uncertainties and geopolitical tensions, India continues to shine as a rare “bright spot” in the world economy, Chief Economic Advisor (CEA) V Anantha Nageswaran said, crediting the country’s steady economic performance and fiscal discipline.
Speaking to PTI, Nageswaran acknowledged the increasingly complex global environment, shaped by military conflicts, economic disruptions, and security concerns. He pointed out that since 2022, global conditions have become far more unpredictable, with events such as the Ukraine-Russia war, rising tensions in West Asia, trade conflicts, and even regional friction between India and Pakistan contributing to the volatility.
“You could say that downside risks are higher than the potential for upside surprises,” he remarked, reflecting on how these global disruptions are affecting not just India, but nearly every economy across the world.
Yet, despite this backdrop, India has managed to stand out. According to the CEA, India’s resilient post-pandemic recovery, combined with prudent fiscal management, has kept the economy stable and investor sentiment strong.
“We have reduced the fiscal deficit and brought down government debt levels,” Nageswaran noted, adding that these improvements have helped boost confidence among global investors. He also highlighted an unusual financial marker — the narrowing of the gap between Indian and US 10-year government bond yields — as a sign of this investor trust. “That’s something we’ve never seen at this level before,” he said.
Currently growing at around 6.5%, the Indian economy has managed to hold its ground even as many advanced and emerging economies struggle with recessionary trends or stagnation. “In this global climate, maintaining 6.5% growth is no small feat,” Nageswaran said, adding that it underscores India’s ability to weather economic storms.
While the government remains committed to pushing growth closer to 7% and beyond, the CEA cautioned that the international environment is no longer as conducive to growth as it was in the past — especially before the 2008 global financial crisis. Factors like tariff wars, geopolitical realignments, and tightening monetary policies globally are making it harder for nations to sustain high growth rates.
Still, he reiterated that India’s consistent performance, amid such global headwinds, is a testament to strong policy frameworks and effective economic governance.
“In today’s uncertain world, even maintaining momentum requires significant effort — and India is doing that hard work,” Nageswaran concluded.
