Global slowdown could last several years, its average impact may be more than global financial crisis of 2008: CEA V Anantha Nageswaran

New Delhi [India], June 18 (ANI): India has maintained a good growth rate despite difficult and unfavourable political and economic conditions, noted Chief Economic Adviser V Anantha Nageswaran on Wednesday.

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Speaking with ANI, Nageswaran said that, "We are doing quite well, the global context has become very uncertain, very difficult. Both political and economic conditions have become unfavourable for growth, and more than that, there is a lot of uncertainty, which means investors would wait to put money on the ground."

Commenting on the World Bank report forecasting global growth rate to drop to its lowest since the global financial crisis of 2008, the Chief Economic Adviser said, "Right now, it may be premature to say that the current situation could match the impact of the 2008 global financial crisis... We may not have a big growth drop like it happened in 2009 globally... This time, it could be a slow-moving event that lasts several years. In some sense, its average impact may be more than the 2008 global crisis, but it will be spread out over many years."

Nageswaran added, "Given all of this situation, I think the Indian economy has maintained a good growth rate in FY 2024-2025 at 6.5 per cent and in FY 2025-2026, we have estimated to be between 6.3 per cent and 6.8 per cent."

On the trade front, Nageswaran reflected optimism on the country's diplomacy. He said, "Our diplomacy, the Petroleum Ministry, and the efforts of the Prime Minister and the External Affairs Minister ensured that India's energy supply wasn't affected. We are a trusted country with no axe to grind; we are seen as a good mediator; every country wants to ensure they get India's goodwill."

He added, "On the economic front, India is trying to use the current development on trade to reduce import duties so our domestic manufacturing cost goes down... We are also trying to use the current global situation to make our investments in education, skilling, or critical minerals... India is trying to create a niche space for itself so that India becomes an essential presence in manufacturing and services." (ANI)

(The story has come from a syndicated feed and has not been edited by the Tribune Staff.)