V. Anantha Nageswaran, Chief Economic Advisor, expressed confidence in India's GDP growth rebound, despite a slowdown to 5.4 percent in Q2 of FY25, which was below expectations. He highlighted the potential for increased capital expenditure (capex) in the coming months as a key driver for economic momentum.

Nageswaran acknowledged the challenges posed by global geopolitical conditions and export uncertainties but stated that it is premature to declare the 6.5 percent growth target for FY25 at risk. The Economic Survey had projected GDP growth for FY25 between 6.5-7 percent. He attributed the disappointing Q2 performance to a higher-than-expected decline in growth and moderated export orders influenced by global developments, including trade uncertainties linked to the upcoming U.S. presidential elections.

Nageswaran emphasized the need for a realistic perspective on growth within a global context and highlighted the resilience of the economy despite the lower-than-expected GDP figures.