India's Chief Economic Advisor V. Anant Nageshwaran has said that many positive signs are visible in the country's economy, which can balance the impact of US tariffs. He says that the steps taken by the government, such as a reduction in direct taxes, GST reforms, and employment-based incentive schemes, are supporting economic strength.

Nageshwaran said that the central government has emphasized structural reforms like ease of doing business and doing business honestly. This will reduce the uncertainty related to tariffs. He said that the figures for the month of August also point to the strong performance of the economy. He believes that even though the US tariffs will have some impact on external demand and domestic production, it will be temporary and limited.

The CEA said that India's real GDP grew by 7.8% in the April-June quarter (FY 2025-26), which is higher than 6.5% in the same quarter last year. At the same time, nominal GDP stood at 8.8%. Manufacturing and service sectors, as well as government consumption, have contributed significantly to this strong performance. He said that the economy can remain stable in the coming times with the help of domestic demand.

Nageswaran admitted that the US tariffs may affect some jobs in export-based units, but it will not be on a large scale. Many units can look for alternative markets. At the same time, domestic demand will increase due to a good monsoon and an increase in rural income. The tax relief measures given in the budget will bring more money into the hands of families, which will increase consumption, and this will compensate for the decrease in demand from America.

The CEA said that the upcoming GST reforms will also give impetus to the economy. He admitted that the reduction in rates may have an impact on revenue, but it will be balanced by increased consumption. According to NPCI data, there has been a huge increase in digital transactions, which shows strong consumer spending. Prime Minister Narendra Modi had announced from the Red Fort on August 15 that new GST reforms would be implemented by Diwali. This topic has been put up for discussion in the GST Council meeting to be held in Delhi on September 3-4.