V. Anantha Nageswaran, Chief Economic Advisor, joined virtually at the India Connect Singapore Edition (Dialogues on Diplomacy, Trade and Technology), in Chennai on Thursday | Photo Credit: BIJOY GHOSH

Recent trade and geopolitical developments may not impact Indias growth projections for the year, and while we should be mindful of the disturbances, we should not be overly alarmed by it, Chief Economic Advisor V Anantha Nageswaran said on Thursday.

The CEA said that they were still sticking to the 6.3-6.8 per cent growth projection as noted in the Economic Survey earlier, and that it was also in line with the 6.5 per cent growth guided by RBI in its MPC on Wednesday.

We should remember that six months of the fiscal are already done and its only the next 6 months of export numbers that we need to worry about, he added. The entire years exports will not be impacted, he added, noting other tailwinds like good monsoon and crude oil prices.

He was engaged in a conversation with Raghuvir Srinivasan, Editor, The Hindu businessline, at the India Connect Singapore Edition talks held as part of Singa60 event in Chennai, which involved dialogues on diplomacy, trade and technology. Organised by Hindu Tamil Thisai, in collaboration with The Hindu & The Hindu businessline, and supported by the Singapore Consulate in India, SinGa60 celebrates six decades of India Singapore ties.

Citing research by Peter Temin, a professor emeritus at MIT, Nageswaran said that developing countries have no choice but to use tariffs as a means of buying time to equip themselves. But what is important here is not just the protection [of tariffs], but its equally important that we use the time afforded by the protection to grow domestic capability, he added. But Indias tariffs have come down substantially over the years as sectors opened up to investment, he noted.

Key priorities

Highlighting some of Indias key priorities for the next two decades, the CEA cited energy affordability and security to be one. While employment generation in era of AI was noted as another key challenge, he also stressed on the skilling of the youth and particularly on improving their mental and physical health. He urged the private sector to set aside geopolitical concerns and accelerate capex for Indias large domestic market.

Singapores know-how, vocational skilling and success around urban planning can be key learnings for India as it navigates these challenges, he added.

Dwelling on India-ASEAN relations, the CEA said that it was perhaps necessary to review and repurpose the India-ASEAN Free Trade pact in todays context as it was signed before the rise of China as a manufacturing power. 

Responding to a question on subdued credit rating of India offered by global agencies, he said that Indias 10-year bond yields are lower than the bond yield of countries that have a higher credit rating than India. So, in some sense, financial markets have given their verdict in favour of India, he said.

Published on August 7, 2025