Chief Economic Advisor Nageswaran On Tariffs, GST And India’s Growth Outlook

India’s Chief Economic Advisor, V Anantha Nageswaran, assesses the economic impact of tariffs and the role of GST reforms in cushioning potential risks. While acknowledging the uncertainty around the direct effect of tariffs on exports and GDP, he highlights that GST reforms could help offset second and third-round effects by boosting domestic demand and stabilising sentiment. According to him, the net drag on GDP for the current financial year could be limited to around 0.2–0.3%, with growth estimates remaining in the range of 6.3–6.8%. He expresses hope that tariff uncertainties will prove short-lived and not spill over into the next financial year.