CEA stated US tariffs-related challenges will dissipate within the subsequent one or two quarters, and urged the non-public sector to do extra because the nation navigates via different longer-term challenges.
He attributed the expansion slowdown in FY25, which noticed a deceleration to six.5% from FY24's 9.2%, to tight credit score circumstances and liquidity points. The proper agriculture insurance policies can add 25% to actual GDP progress, Nageswaran added.
On the US tariffs, Nageswaran stated it's the second and third order impacts. The affect will stream as soon as sectors like gems and jewelry, shrimps and textiles have taken the primary order brunt,as that can be “tougher” to sort out.
The federal government is conscious of the state of affairs and conversations with the impacted sectors have already begun, Nageswaran stated. One will hear from the policymakers within the coming days and weeks however individuals must be affected person, he added.
Speaking concerning the upcoming meet in Alaska between US President Donald Trump and his Russian counterpart Vladmir Putin, he stated that the end result of US officers' go to to India is prone to be impacted. When requested concerning the particulars on the commerce negotiations between India and the US, the academic-turned-advisor stated issues are very fluid on the world stage proper now with relations swinging from cooperation to stalemate. He spelled out his expectation of the affect of fifty% US tariff on Indian exports. “I do consider that the present state of affairs will ease out in 1 / 4 or two. I do not assume that from a long-term image, the India affect can be that important however within the brief run, there can be some affect,” he stated. He stated nobody can guess the precise the reason why President Donald Trump selected to slap the excessive tariffs on India, questioning if it is the fallout of Operation Sindoor or one thing much more strategic.
Nonetheless, the CEA stated the deal with tariff-related points mustn't blind us to extra “vital challenges”, together with the affect of synthetic intelligence, reliance on one nation for essential minerals, and their processing and strengthening of provide chains.
He exhorted the non-public sector to do extra “as we navigate these longer-term challenges, promising that public coverage will play the facilitator's function”.
“Non-public sector additionally has a variety of pondering to do, given the huge strategic challenges we face within the coming years… the non-public sector additionally has to consider the long-term slightly than the following quarter, which is what might need led to most of the challenges we're at the moment starting to face,” he stated within the feedback geared toward India Inc.
He, nonetheless, didn't elaborate on the topic any additional.
Stating that the federal government has allotted cash in direction of the analysis functions, he stated it's now for the non-public sector to up their investments within the space.
The Indian youth is observing each bodily and well being well being points arising from extra display use, consumption of extremely processed meals, and many others, which is resulting in anxieties and even suicidal ideas amongst individuals, the CEA stated, in search of the non-public sector's assist to sort out the problem.
He welcomed the capital expenditure put in by the non-public sector in FY26 and information to be launched in February subsequent 12 months will attest to the identical.
The consumption story is “fairly wholesome”, the CEA stated, pointing to the info on UPI utilization. Particularly on city consumption, he rued that there is no such thing as a correct information supply to seize providers consumption, and added that drawing from listed firms' earnings might also not be the appropriate measure as consumption is transferring to the unlisted area.
The general useful resource mobilisation within the economic system is just not displaying any slackening, the CEA stated, asking all to have a look at banks credit score progress, industrial paper issuances, and IPO fundraising collectively.
On China, Nageswaran stated “we additionally want to grasp the safety dimension and take a look at the USD 100 billion commerce deficit past simply the quantity”. As an answer, there's a must diversify the sources of imports and the CEA harassed that the non-public sector could have a task to play there.
With out naming China, he stated just one nation provides essential minerals, that are important for semiconductors, synthetic intelligence tech, and added that the availability is “critically unstable”.
“We can not go from crude oil import dependence to essential minerals and ladders import dependence. Perceive that crude oil (sources) a minimum of is extra diversified,” he stated.
“Indian coverage makers should select between accepting everlasting strategic dependence on adversaries or committing the assets mandatory for real assist to independence,” Nageswaran stated.
Stating that AI will trigger labour displacement, Nageswaran pitched for warning in AI adoption and added that “we should select the areas through which we enable AI to be deployed and harnessed, and in addition the pace with which we achieve this”.
There's a must create a minimum of 80 lakh new jobs every year within the subsequent 10-12 years, he added.
(With inputs from PTI)
