India’s Economy Remains Strong Despite Global Challenges: CEA Nageswaran

Even as the world faces economic uncertainty, India is holding its ground. Chief Economic Advisor Dr. V Anantha Nageswaran recently said that India’s economy is in “good shape”, backed by solid numbers and smart policymaking.

Speaking at an event hosted by Ashoka University, Dr. Nageswaran pointed to current trends that show steady growth, strong fundamentals, and optimism for the future—even as global markets continue to face turbulence.

Positive Indicators Amid Global Turmoil

Dr. Nageswaran made it clear: India isn’t just surviving, it’s moving forward. While the final GDP numbers for FY25 will be out soon, early data is already painting a promising picture.

He emphasized that macroeconomic stability remains a top priority—meaning policies are aimed at balancing inflation, growth, and investment. The goal? Growth that’s not only fast, but also fair and inclusive.

According to him, India must continue investing in human capital, infrastructure, innovation, and structural reforms. These are the levers that will push the economy forward and help build long-term resilience.

India Poised for Global Leadership

Adding to the optimism, the International Monetary Fund (IMF) in its April 2025 forecast projected India’s economy to grow by 6.2% in 2025 and 6.3% in 2026. That makes India the fastest-growing major economy for the foreseeable future.

This strong performance comes despite global headwinds like high interest rates, energy price shocks, and trade tensions. It’s a sign that India is not just reacting to global changes, but strategically adapting to them.

Focus Areas for Future Growth

Dr. Nageswaran outlined key sectors where India must double down:

Affordable energy and green transition
Jobs and upskilling, especially with AI
Improved education and food security
Private sector investment and support for MSMEs
Equity between labor and capital earnings

Vision 2047: India as a Developed Nation

Suman Bery, Vice Chairman of NITI Aayog, also shared his vision at the same event. He reminded the audience that India aims to become a developed, high-income country by 2047—just in time for its 100th year of independence.

He believes this vision is realistic, but it requires action now.

“We’ve averaged a 6.5% growth rate for three decades. That’s not luck, it’s policy consistency and institutional maturity,” Bery noted.

He added that India can turn global uncertainty into opportunity—by tapping into its young workforce, adopting new technologies, and repositioning itself in global supply chains.