Chief Economic Adviser (CEA) V Anantha Nageswaran on Thursday expressed confidence in the resilience of the Indian economy, stating that it is well positioned to withstand external disruptions and emerge stronger. He attributed this strength to the macroeconomic stability built over recent years, which provides a cushion against global uncertainties.
Growth Trajectory and Resilience
Speaking to ANI, Nageswaran noted that India sustained growth of over 7 percent before the recent geopolitical disruptions in West Asia and remains capable of handling setbacks in the current fiscal year. "The economy is in a good position to absorb the shocks and then emerge stronger at the end of it," he said. "We are doing well. We have been growing at 7% plus until this West Asia conflict happened. This year, there will be some setbacks, but we are well-positioned to deal with them."
His remarks come amid concerns over the ongoing West Asia conflict, higher crude oil prices, and global volatility, which have raised questions about growth prospects for several economies.
Inflection Point for India
Addressing the 67th Institute Day celebrations at IIT Madras, the CEA described the current geopolitical turmoil as a turning point that could help India strengthen its long-term growth path. "The 2026-27 Persian Gulf conflict is an inflection point for India because we have done a good job post-COVID in maintaining steady growth with macroeconomic stability," he said. "But this crisis, due to the West Asian conflict, is giving us one more opportunity to put the country on an even stronger and more resilient growth path."
Long-Term Opportunity
Nageswaran also spoke about India’s broader long-term opportunity in the global economy and technology landscape. "The 21st century offers a civilizational reentry into the position of technological frontier," he remarked. "The students in this hall will not be spectators in the story, they will be its authors. Institute Day is not a celebration of the past, it is a commissioning for the future."
Tamil Nadu's Contribution
On Tamil Nadu’s contribution to the national economy, Nageswaran highlighted the state’s diversified strengths across education, skills, manufacturing, and services. "We have quite a few strengths here in Tamil Nadu in terms of education, skilling, industrial establishment, and services sector. It's an all-round economy with strengths," he told ANI.
He also praised the IIT Madras alumni ecosystem, calling it a major national asset. "The IIT Madras alumni network is one of the great unrealized assets. It is partially realized as well. Giving back is compounding an investment already made," he said.
