Latest news with #Nageswaran
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Business Standard
21-06-2025
- Business
- Business Standard
India to face limited inflation impact from oil surge: CEA Nageswaran
India's top government adviser said rising oil prices are likely to have a limited impact on inflation for now and Asia's third-largest economy remains in a relatively favorable position to weather global risks. While high oil prices due to the ongoing crisis in the Middle East is a matter of concern, 'it is still not something that is going to be significant in terms of impact,' Chief Economic Adviser V. Anantha Nageswaran said in an interview on Friday. Cooling inflation, ample liquidity and low interest rates will provide the right conditions for India's economy despite global uncertainties, he added. Brent crude prices rose 20 per cent in the last one month as tensions between Israel and Iran escalated. Soaring oil prices can put pressure on the South Asian nation that is the world's third-biggest importer of crude. It can also stoke inflation and hurt household incomes in a country where private consumption accounts for as much as 60 per cent of the gross domestic product. 'It is too soon to get overly concerned yet,' Nageswaran said, adding that India will be able to absorb the impact of high crude prices if they are short-lived. 'I think it might have to take more than a quarter or even getting into a couple of quarters before we really have to worry.' The government expects the economy to expand 6.3 per cent to 6.8 per cent for the fiscal year ending March. While that pace is lower than the 8 per cent average seen in the last couple of years, India still retains the world's fastest-growing major economy tag. Nageswaran said good monsoon rains, that irrigate more than half of the country's farmlands, will also bode well for the economy. 'The underlying price pressures are quite absent and ample rainfall will also aid India's economy,' he said.
Time of India
19-06-2025
- Business
- Time of India
Rising crude prices pose a risk for India, says CEA
NEW DELHI: Rising global crude oil prices, triggered by the conflict between Israel and Iran, pose a risk for India, a top official said on Wednesday, adding that the impact on the economy, however, would depend on the extent of the increase and how long it lasts. "The current conflict between Israel and Iran may not be too good for us. In the last week, crude oil prices rose to about $73-74 per barrel. This raises essential risks for India," chief economic adviser V Anantha Nageswaran told a news agency in Thiruvananthapuram. He said in 2022, when the Russia-Ukraine war started, crude oil prices went to $100 per barrel. "Yet the economy was able to sustain a 7% growth rate. A lot depends on how much the crude oil prices rise further and how long that period lasts," Nageswaran said. He also said that the Indian economy maintained a good growth rate in 2024-25 at 6.5% against the backdrop of an uncertain and complex global situation, and in 2025-26, it is estimated between 6.3-6.8%. "To achieve 6.5% on a steady basis in this environment is a creditable achievement. India is poised to maintain that track record," said Nageswaran. He also said that the difference between India's growth rate and the average growth rate of developed economies is much higher now than it was between 2003 and 2008 when India's economy was growing at 8-9%. Nageswaran said the current govt unveiled a number of reform measures, which should help in boosting growth. "If we are able to move faster and convey a sense of dynamism, we can improve on our growth rate," he said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
NDTV
18-06-2025
- Business
- NDTV
India A "Bright Spot" Amid Global Uncertainty: Chief Economic Advisor
Thiruvananthapuram: India remains a rare "bright spot" in a world facing growing uncertainty, said Chief Economic Advisor (CEA) V Anantha Nageswaran, pointing to the country's steady economic performance despite ongoing global challenges. 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. "You could say that downside risks are higher than the potential for upside surprises," Mr 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. "To some extent, one can say that the global environment today--whether political, economic or related to security--has become considerably more complicated and more challenging for growth, not just for India but for several countries, almost for the entire world economy," the CEA said. But under these circumstances, Mr 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. 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, Mr 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.
Time of India
18-06-2025
- Business
- Time of India
‘Bright spot in a dark world': India defies global gloom with 6.5% growth, strategic edge, says CEA Anantha Nageswaran
Chief Economic Advisor - V Anantha Nageswaran NEW DELHI: In a world clouded by war, economic uncertainty, and fractured geopolitics, Chief Economic Advisor (CEA) V Anantha Nageswaran says India continues to shine as a rare 'bright spot,' defying odds with robust economic performance and strategic stability. Speaking to PTI, Nageswaran described the global landscape since 2022 as increasingly volatile, marked by intensifying conflicts, from Ukraine and West Asia to India's own tensions with Pakistan. 'Downside risks are higher than the potential for upside surprises,' he said, acknowledging the challenges facing most economies worldwide. Yet India, he asserted, has shown surprising resilience. 'We have reduced the fiscal deficit, brought down government debt, and narrowed the bond yield gap with the US, a first,' the CEA noted. With growth holding steady at 6.5%, India is outperforming most major economies, even as others struggle under inflation and geopolitical stress. Nageswaran credited strong macroeconomic reforms and investor-friendly policies for the momentum, but also pointed to India's strategic posture as a key strength. 'We've not only held our ground diplomatically and militarily but also emerged as a confident, reliable voice on global platforms,' he said, referencing the recent standoff with Pakistan. This assertive stance, he added, has bolstered defence manufacturing under Make in India and Atma Nirbhar Bharat. 'We've gone from nowhere to being a major global defence exporter. Our equipment has proven itself, and morale is high.' As supply chain risks mount globally, India's pivot to self-reliance in strategic sectors, including defence, signals a long-term shift. 'We can no longer depend on uncertain partners,' Nageswaran said. 'Strategic autonomy is not optional, it's imperative.' Despite the turbulence, India is not only staying afloat, but setting the pace. 'Maintaining 6.5% growth in today's climate is no small feat,' the CEA concluded. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
India Gazette
18-06-2025
- Business
- India Gazette
Global slowdown could last several years, its average impact may be more than global financial crisis of 2008: CEA V Anantha Nageswaran
New Delhi [India], June 18 (ANI): India has maintained a good growth rate despite difficult and unfavourable political and economic conditions, noted Chief Economic Adviser V Anantha Nageswaran on with ANI, Nageswaran said that, 'We are doing quite well, the global context has become very uncertain, very difficult. Both political and economic conditions have become unfavourable for growth, and more than that, there is a lot of uncertainty, which means investors would wait to put money on the ground.'Commenting on the World Bank report forecasting global growth rate to drop to its lowest since the global financial crisis of 2008, the Chief Economic Adviser said, 'Right now, it may be premature to say that the current situation could match the impact of the 2008 global financial crisis... We may not have a big growth drop like it happened in 2009 globally... This time, it could be a slow-moving event that lasts several years. In some sense, its average impact may be more than the 2008 global crisis, but it will be spread out over many years.'Nageswaran added, 'Given all of this situation, I think the Indian economy has maintained a good growth rate in FY 2024-2025 at 6.5 per cent and in FY 2025-2026, we have estimated to be between 6.3 per cent and 6.8 per cent.'On the trade front, Nageswaran reflected optimism on the country's diplomacy. He said, 'Our diplomacy, the Petroleum Ministry, and the efforts of the Prime Minister and the External Affairs Minister ensured that India's energy supply wasn't affected. We are a trusted country with no axe to grind; we are seen as a good mediator; every country wants to ensure they get India's goodwill.'He added, 'On the economic front, India is trying to use the current development on trade to reduce import duties so our domestic manufacturing cost goes down... We are also trying to use the current global situation to make our investments in education, skilling, or critical minerals... India is trying to create a niche space for itself so that India becomes an essential presence in manufacturing and services.' (ANI)
