Overview

• Chief Economic Adviser V. Anantha Nageswaran told an AIMA event that India is not working on any plan to build an alternative to the US dollar.
• He reported real GDP growth of 7.8% in Q1 FY26 and said early Q2 readings suggest the momentum continues.
• The government remains on track for a 4.4% fiscal deficit target this year, following a sovereign rating upgrade to BBB and a drop in 10-year yields to roughly 6.4%.
• Policy permits bilateral trade settlement in local currencies where feasible without seeking to challenge the dollar’s global role.
• He flagged risks from tariffs and geopolitical volatility and pointed to buffers such as foreign-exchange reserves above $700 billion and gains from reforms including the IBC, GST, RERA and public bank consolidation.