Government claims! The country’s growth rate will be more than 6.8 percent

New Delhi. The country’s Chief Economic Advisor (CEA) V Ananth Nageswaran on Friday expressed confidence that the country’s economic growth rate will be more than 6.8 percent in the current financial year. He said that the main reason for this is the increase in consumer consumption due to reduction in GST rates and relief in income tax. In the economic review presented in Parliament earlier this year, the real economic growth rate for the financial year 2025-26 was estimated to be between 6.3 to 6.8 percent.

Nageswaran said in CNBC-TV18’s ‘Global Leadership Summit 2025’ that now I can easily see a rate above 6.8 percent. In August, after the US imposed tariffs, we were worried that we would be in the low 6 to 7 per cent range, but now it is clear that the growth rate will be more than 6.5 per cent and possibly even above 6.8 per cent. However, before saying the figure of 7 percent, the data of the second quarter will be awaited.

Agriculture sector again shows strength
The growth rate of the country’s gross domestic product (GDP) was 7.8 percent in the first quarter of the current financial year. This growth was mainly achieved by the better performance of the agriculture sector and the strength of sectors like trade, hotels, financial services and real estate. The previous highest GDP growth rate of 8.4 percent was recorded in January-March 2024. It is expected that the strong performance of the agriculture sector will continue in future also, which contributes significantly to the GDP.

What is China’s growth rate?
China’s growth rate in the first quarter i.e. April-June was 5.2 percent. Thus, India still remains the fastest growing large economy in the world. Nageswaran said that if India-US bilateral trade agreement (BTA) is concluded, economic growth will get additional impetus. He said that if a solution is found on the trade front, then the growth forecast can go higher. Also expressed hope that the agreement will be completed soon but did not give any time limit for it.

Why is India facing a challenge?
At present, America has imposed a higher duty of 50 percent on goods imported from India from August 27, which also includes an additional punitive duty of 25 percent for purchasing crude oil from Russia. While imposing this customs duty on August 7, US President Donald Trump had said that India has harmed American interests by continuing to import oil from Russia and maintaining trade barriers. However, after the new US sanctions, India has reduced oil purchases from Russia and increased it from America. In such a situation, it is being estimated that the trade deal between the two countries can be completed soon.