India’s Chief Economic Advisor, V. Anantha Nageswaran, highlighted the country’s enhanced resilience in the external sector and improved macroeconomic fundamentals. Speaking at the NDTV Ignite Summit, Nageswaran mentioned that risks to the external sector have diminished significantly, reducing pressure on the Reserve Bank of India to utilize foreign exchange reserves for managing the rupee. The positive outlook was attributed to prudent macroeconomic management and timely policy interventions during recent global disruptions.
Nageswaran supported the RBI’s GDP growth forecast of 6.6% for FY27, emphasizing that India’s macroeconomic situation is now more stable despite global uncertainties. He emphasized the need for sustained long-term growth of around 8% to realize the vision of a developed nation under the Viksit Bharat initiative. However, he cautioned that prolonged geopolitical tensions in West Asia or a sustained increase in crude oil prices above $100 per barrel could potentially lower the growth rate to around 6%.
Addressing employment and technology concerns, the CEA stressed the importance of creating new opportunities within the expanding artificial intelligence ecosystem. He highlighted the necessity for workers to develop skills that complement AI and are less vulnerable to automation-driven disruptions. Nageswaran also noted an improvement in corporate sentiment, with listed companies increasing investments, signaling a revival in the private capital expenditure cycle.
Furthermore, optimism was expressed regarding the supportive role of the rural economy in driving growth, with expectations for a favorable upcoming kharif season. Despite worries about a potential El Nino impact, higher reservoir levels and improved sowing conditions are anticipated to bolster agricultural output. Former NITI Aayog CEO Amitabh Kant echoed the importance of AI readiness, emphasizing the need for India to build a strong talent pool, robust data resources, progressive policy frameworks, and enhanced digital public infrastructure to establish global leadership in AI.
