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India to Sustain 7% Growth Despite Global Headwinds, Says Nilesh Shah
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News18•03-10-2026, 16:45
India to Sustain 7% Growth Despite Global Headwinds, Says Nilesh Shah
- •Nilesh Shah, Member of the Prime Minister’s Economic Advisory Council, expects India's economic growth to remain around 7% this year and in the future.
- •Despite concerns like higher oil prices and deficient rainfall, the momentum in the second quarter looks promising.
- •Rising oil prices pose a significant risk, potentially impacting inflation, interest rates, the rupee, economic growth, and corporate profitability.
- •Shah highlighted UPI as a world-class intermediation product, suggesting that some form of charge (MDR) might be necessary to sustain its quality and service.
- •He compared potential UPI charges to tolls for road maintenance, arguing that good service often requires payment.
Key Questions Answered
India is expected to register around 7 per cent economic growth this year, with strong momentum in the second quarter despite challenges like higher oil prices and deficient rainfall.
When oil prices rise, inflation increases, interest rates go up, the rupee weakens, economic growth is impacted, and corporate profitability falls, affecting overall earnings.
The government has stated there is no MDR on transactions below Rs 2,000, but Nilesh Shah noted that maintaining a quality system requires financial resources and users may need to pay some MDR for good service in the future.
