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Speaking at the India Maritime Week in Mumbai, Nageswaran noted three global rating agencies have recently upgraded their ratings on India, and if the country continues on the same track, India can “soon” break into the ‘A’ rating category, a notch above the current lowest investment grade rating.
Recently, the International Monetary Fund (IMF) forecast India’s GDP growth to be 6.6%, while the Reserve Bank of India’s (RBI) Monetary Policy Committee projected GDP to increase by 6.8%, indicating upward revisions of 20 and 30 basis points, respectively.
“We should be quite satisfied with the way the Indian economy has responded to global uncertainties this year, and the tariff-related developments as well,” Nageswaran said.
Against a global backdrop characterised by economic and trade policy uncertainty, India’s economy gained momentum in Q2FY26. This is particularly significant, as the United States imposed higher tariffs on India in August, the finance ministry said in a report released on Monday.
The US government imposed a 25% additional reciprocal tariff on Indian imports effective August 7, and raised the overall levy to 50%, with a 25% penal tariff linked to oil imports taking effect from August 27, impacting several labour-intensive sectors.
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“But the resilience of the economy, the timely policy measures taken to boost demand have actually placed us in a very comfortable position,” Nageswaran said.
Citing RBI data, he said the total resource mobilisation in the economy has increased by 28.5% per annum over the last six years. The RBI has cut rates and undertaken liquidity measures to ensure that there is “ample funds availability” in the economy, he pointed out.
Nageswaran said if India ‘A’ rating from rating agencies, it could bring down the overall cost of capital further.
“It will be our endeavour from the government to continue to adhere to fiscal prudence, fiscal stability, low inflation and therefore low borrowing cost for the industry as well,” he said.
Broader themes dominating the global landscape over the next 20 years will not be the same as those of the last 40 years, which saw greater market integration and predictability, he said, adding that the future will be full of fragmentation, less predictable, and jostling for market share.
“When the rising tide will not be lifting all boats, the boats that are well-prepared and well-equipped will be the ones that will be able to navigate not only the rising tide but also the volatile waves,” he said at the maritime conference.