Last Updated on 13 August 2025 by BIZNAMA NEWS
Posted on .
AMN
Chief Economic Advisor (CEA) V. Anantha Nageswaran on Wednesday assured that the recent US tariffs on Indian exports will likely have only a temporary effect, with the impact expected to fade within one or two quarters.
Speaking at an event in Mumbai, Nageswaran acknowledged that certain sectors—such as gems and jewellery, shrimps, and textiles—are currently bearing the brunt of the new duties. However, he emphasised that the overall long-term effect on India’s economy would remain limited. He noted that the government is closely monitoring the situation and has already begun consultations with affected industries to provide targeted support.
The CEA added that broader trade relations between India and the US could see further developments after the upcoming meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska later this month. While the meeting is not directly trade-focused, geopolitical shifts could influence economic dynamics, he said.
Highlighting the economy’s resilience, Nageswaran pointed to healthy indicators such as strong bank credit growth, higher commercial paper issuances, and robust IPO fundraising—signs of continued investor confidence and resource mobilisation.
He urged the private sector to keep its focus on long-term strategic priorities, strengthen supply chain networks, and build resilience against external shocks. He assured that public policy would act as a facilitator for this process.
Nageswaran also stressed the need for India to diversify its sources of imports to reduce dependence on any single market. On technology adoption, he cautioned that while Artificial Intelligence offers significant productivity gains, it must be integrated thoughtfully to prevent large-scale labour displacement.
