Is India Considering an Alternative to the US Dollar?
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Synopsis
In a recent statement, India's Chief Economic Adviser V Anantha Nageswaran has put to rest rumors about the nation developing a substitute currency for the US dollar. He emphasizes India's economic stability and the ongoing reforms that underpin its growth potential. With a commitment to innovation, the focus remains on enhancing the business environment and achieving fiscal targets.
Key Takeaways
- India is not pursuing an alternative to the US dollar.
- The economy is expected to remain stable amidst global trade challenges.
- Recent reforms have positively impacted the business environment.
- India's fiscal deficit target is on track for the year.
- Collaboration between government and business is essential for growth.
New Delhi, Sep 10 (NationPress) Chief Economic Adviser V Anantha Nageswaran on Wednesday dismissed the rumors surrounding India's potential creation of a substitute currency for the US dollar, clarifying that there are no such initiatives in the pipeline.
Nageswaran further stated that despite ongoing tariff conflicts and geopolitical instability impacting global trade, the Indian economy is poised for positive developments rather than setbacks. He reaffirmed that India’s economic foundation remains robust.
The CEA indicated that the cumulative effect of US tariffs along with the recent GST reforms is projected to result in a decrease of 20 to 30 basis points in India's GDP growth for the fiscal year 2026, which is currently estimated to fall between 6.3% and 6.8%.
He credited this resilience to a decade's worth of reforms that have improved both digital and physical infrastructure alongside the gradual formalization of small and medium enterprises.
According to the CEA, reforms such as the Insolvency and Bankruptcy Code, Goods and Services Tax, Real Estate Regulation Act, and consolidation of public sector banks have significantly enhanced the business climate. Recent modifications in tax administration and GST adjustments have also bolstered compliance among companies.
He emphasized that these initiatives provide a vital foundation for sustained growth and should not merely be regarded as incremental changes.
Nageswaran pointed out that India's recent upgrade in sovereign credit rating, the first in almost two decades, is a clear indicator of heightened global confidence in the country’s economic governance.
The government is well on its way to achieving its fiscal deficit target of 4.4% for the year, he added.
The CEA stressed that forthcoming reforms must be a joint effort between the government and the private sector. He encouraged businesses to focus on innovation and efficiency rather than resorting to protectionist measures, warning that sustainable growth hinges on expanding the economic pie rather than merely redistributing existing resources.
India’s Q1 GDP growth recorded an impressive 7.8%, and the government's initiative to simplify the GST framework is anticipated to inject approximately Rs 50,000 crore into the economy, enhancing domestic consumption.
Point of View
It is vital to acknowledge India's cautious yet optimistic approach towards its economic landscape. The statements from the Chief Economic Adviser highlight the nation's commitment to stability amidst global uncertainties, reinforcing the need for collaboration between government and businesses to foster growth and innovation.
NationPress
10/09/2025
Frequently Asked Questions
What did the Chief Economic Adviser say about the US dollar?
The Chief Economic Adviser, V Anantha Nageswaran, stated that there are no current plans for India to create an alternative currency to the US dollar.
How is India's economy performing despite global challenges?
Nageswaran highlighted that India's economy is positioned for positive news rather than shocks, thanks to ongoing reforms and a stable foundation.
What impact will US tariffs have on India's GDP?
The net impact of US tariffs along with recent GST reforms is expected to reduce India's fiscal year 2026 GDP growth by 20 to 30 basis points.
What recent reforms have enhanced India's business environment?
Reforms like the Insolvency and Bankruptcy Code, GST, and public sector bank consolidation have improved the overall business climate in India.
What is India's GDP growth projection?
India's GDP growth is currently projected to be between 6.3% and 6.8%.
