New Delhi: India's external sector has become significantly more resilient and the country's macroeconomic fundamentals are now better placed to withstand global shocks, according to Chief Economic Advisor (CEA) V. Anantha Nageswaran. Speaking at NDTV Ignite Summit, Nageswaran said the risks facing the external sector have eased considerably, adding that the Reserve Bank of India (RBI) is unlikely to face pressure to draw down its foreign exchange reserves to manage the rupee.
On the external front, he said that the worst is behind us, attributed the improved outlook to prudent macroeconomic management and timely policy interventions during recent global disruptions. Backing the RBI's FY27 GDP growth projection of 6.6 per cent, Nageswaran said India's macroeconomic situation is now much more under control despite uncertainties in the global environment.
Looking ahead, Nageswaran said India would need to sustain growth of around 8 per cent over the long term to achieve the goal of becoming a developed nation under the Viksit Bharat vision.
However, he stated that prolonged geopolitical tensions in West Asia or a sustained rise in crude oil prices above $100 per barrel could weigh on growth and potentially lower the expansion rate to around 6 per cent.
On employment and technology, the CEA stressed the need to create new opportunities around the rapidly expanding artificial intelligence ecosystem. (IANS)
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