New Delhi, Aug 29 (PTI) Chief Economic Advisor V Anantha Nageswaran on Friday exuded confidence that Indian economy will grow at a rate between 6.3 and 6.8 per cent in the current fiscal on strong domestic demand, even though there would be some downside risks to the projections due to steep 50 per cent US tariffs.

Briefing reporters after the announcement of first quarter GDP numbers which came in at 7.8 per cent, he said that high tariffs are expected to be "short-lived" as both the countries are in talks for removal of the 25 per cent penal tariff and a subsequent bilateral trade deal.

"Despite the reciprocal tariffs and penal tariff (imposed by US), and after seeing the resilience of Q1 growth we are retaining the growth rate projections for current fiscal at 6.3-6.8 per cent," Nageswaran told reporters here.

He said that the downside to GDP growth forecast for the current fiscal is unlikely to be significant.

The Economic Survey tabled in parliament in January had projected real economic growth at 6.3-6.8 per cent for FY26.

Nageswaran hoped that aggregate demand growth should hold up in the coming quarters as GST rate cut is on the cards and festive demand will drive consumption. PTI JD DP HVA

Trade tariffs pose downside risk to growth projections while domestic demand and policy measures support retained forecasts. Projected real GDP growth is retained at a 6.3-6.8 per cent range based on resilient domestic demand, a strong first quarter outturn, anticipated GST rate adjustments and festive consumption sustaining aggregate demand, while steep reciprocal tariffs imposed by a trading partner constitute a downside risk that may be temporary pending bilateral negotiations for tariff removal and a trade agreement.