Mumbai: Chief Economic Advisor (CEA) V. Anantha Nageswaran on Wednesday downplayed concerns over the recent US tariffs on Indian goods, predicting their impact will be “short-lived” and likely to ease within a quarter or two.
Addressing an industry gathering in Mumbai, Nageswaran acknowledged that sectors such as gems and jewellery, shrimps, and textiles are bearing the immediate brunt of Washington’s move. However, he emphasised that the overall effect on India’s economy will be limited and transient.
“The government is closely monitoring the situation and is already in dialogue with affected sectors,” he assured, calling for patience from industry stakeholders.
He also pointed out that the broader India–US trade equation could be influenced by geopolitical developments — including the upcoming meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska later this month.
Highlighting India’s strong macroeconomic fundamentals, Nageswaran cited robust bank credit growth, healthy commercial paper issuances, and a steady stream of IPO fundraising as indicators of resilient resource mobilisation.
Urging private enterprises to prioritise long-term strategies and build supply chain resilience, the CEA assured that public policy would provide an enabling environment. He also underlined the need for India to diversify its import sources and approach Artificial Intelligence adoption cautiously to prevent large-scale labour displacement.