Economy: Amid global uncertainties, India a rare “bright spot”
Virendra Pandit
New Delhi: As the world struggles against multiple uncertainties, India remains a rare “bright spot,” Chief Economic Advisor (CEA) V. Anantha Nageswaran said on Wednesday, pointing to the country’s steady economic performance despite ongoing global challenges over the last few years.
While conflicts and disruptions have been part of the global scene since 2022, they have become more intense and unpredictable, making the overall environment — whether political, economic, or security-related — far more difficult for growth worldwide, the media reported him as saying.
“You could say that downside risks are higher than the potential for upside surprises,” Dr. Nageswaran said about the impact on the Indian economy because of rising global uncertainties caused by military conflicts in West Asia (Middle East), between Ukraine and Russia, and also between India and Pakistan, besides tariff wars.
“To some extent, one can say that the global environment today — whether political, economic or related to security — has become considerably more complicated and challenging for growth, not just for India but for several countries, almost for the entire world economy,” the CEA said.
But even under these circumstances, he said he believes that India does indeed stand out as a relatively “bright spot.”
Asserting that India’s economy has shown resilience since the COVID-19 pandemic, achieving strong growth and improving its fiscal health, he said, “We have reduced the fiscal deficit and brought down government debt levels.”
This helped build confidence among investors, as reflected in the narrowing gap between Indian and US 10-year government bond yields — “something we’ve never seen at this level before.”
Dr. Nageswaran said India’s current growth of around 6.5 percent is a significant achievement under the current challenging circumstances.
Given how tough the global climate has become since the 2008 financial crisis, keeping this growth rate is no small feat, he said.
While the government continues efforts to raise the growth rate to 7 percent and beyond, the CEA cautioned that the world is no longer operating under the same favourable conditions it once did.
The government is doing the hard work to grow faster, but even maintaining a 6.5 percent growth rate was a solid outcome in today’s world.
India’s strategic edge in its ongoing tensions with Pakistan, along with its steady economic reforms, is reinforcing the country’s image as a stable and secure investment destination.
India has not only asserted clear dominance in the recent standoff with Pakistan but also demonstrated maturity and confidence in global diplomatic forums. This has contributed to the perception of India as a reliable and strong economy, Dr. Nageswaran said.
The country’s status as a reliable investment destination is also supported by the fact that India recovered from the pandemic shock far better than many other nations –in terms of growth rate, job creation, and fiscal management.
About India’s superior strategic position in the conflict with Pakistan is influencing defence-related industrial growth, particularly under the ‘Make in India’ and Atma Nirbhar Bharat initiatives, he said that indigenous equipment has performed well and boosted morale. This success encouraged greater self-reliance.
In shifting geopolitical climate, India cannot afford to depend on unreliable supply chains, Nageswaran said, adding the country must produce domestically to ensure strategic autonomy.
India’s defence sector has made strong gains over the past decade under the leadership of Prime Minister Narendra Modi, with exports steadily rising.
“It is an ongoing exercise. We have gone from nowhere to becoming a major global defence exporter. This progress will only continue to strengthen. It is not a new development–it has been taking shape over the past 10 years.”
