India’s economy continues on fast-growth track: CEA Nageswaran

The overall momentum of the Indian economy has not slowed, as is evident from high-frequency indicators and although trade-related issues are important, they should not overshadow other critical challenges, the government’s Chief Economic Advisor (CEA) V. Anantha Nageswaran said on Wednesday.
In his address at an event here, Nageswaran said the consumption slowdown last year was largely due to tight credit and liquidity conditions, prompting the government to announce substantial middle-class tax cuts in the Union Budget. The Reserve Bank of India has also cut policy rates by 100 basis points and ensured a liquidity surplus to support growth, he added.
He said it was too early to assess what impact the US tariffs would have on India’s GDP growth. He said that India must significantly step up efforts in AI and semiconductor manufacturing to compete with the US and China. He identified energy transition, energy security, AI’s economic impact, and sector-wide collaboration as the main challenges. He called for close coordination between public and private sectors. He urged the private sector to look beyond quarterly results and commit to long-term national priorities.
On Tuesday, the Cabinet Committee on Economic Affairs approved Rs 4,600 crore for four semiconductor projects under the India Semiconductor Mission across Odisha, Punjab, and Andhra Pradesh.
Shedding light on the data points related to consumer participation in online gaming, he mentioned that in July alone, monthly spending on online gaming stood at about Rs 10,000 crore — implying an annualised run rate of approximately Rs 1.2 lakh crore.