Festive demand, tax sops to boost growth: Nageswaran

Exporters are looking at the tariff uncertainty as an opportunity to explore new markets, Nageswaran said

- Gireesh Chandra Prasad

Domestic demand for goods and services will strengthen further in the coming quarters due to the festive season, lower inflation, and the government's tax relief measures, chief economic adviser V. Anantha Nageswaran said on Friday. He also said that while the US's additional tariffs on Indian goods posed risks to domestic economic activity, these may not be significant in view of ongoing talks for a bilateral trade agreement and the adaptability and resilience of Indian businesses.

Given strong first-quarter performance and how Indian industries are adapting to cushion the effects of the tariffs, the finance ministry is not revising its 6.3-6.8% gross domestic product (GDP) growth forecast for 2025-26, Nageswaran said at a briefing.

India's economy exceeded expectations to grow at 7.8% in the June quarter, its fastest expansion in five quarters, aided by strong growth in agriculture, manufacturing, construction, and services sectors.