Chief Economic Advisor V Anantha Nageswaran said that high tariffs are expected to be “short-lived” as both countries are in talks for the removal of the 25 per cent penal tariff and a subsequent bilateral trade deal.
Chief Economic Advisor V Anantha Nageswaran on Friday exuded confidence that the Indian economy will grow at a rate between 6.3 and 6.8 per cent in the current fiscal on strong domestic demand, even though there would be some downside risks to the projections due to steep 50 per cent US tariffs.
Briefing reporters after the announcement of first-quarter GDP numbers, which came in at 7.8 per cent, he said that high tariffs are expected to be “short-lived” as both countries are in talks for the removal of the 25 per cent penal tariff and a subsequent bilateral trade deal.
“Despite the reciprocal tariffs and penal tariffs (imposed by the US), and after seeing the resilience of Q1 growth, we are retaining the growth rate projections for the current fiscal at 6.3-6.8 per cent,” Nageswaran told reporters in Delhi.
He said the downside to the GDP growth forecast for the current fiscal is unlikely to be significant.
