GDP Growth Target May Breach Upper Price Band If...: Ficci Vice President Vijay Sankar

Vijay Sankar, the vice president of the Federation of Indian Chambers of Commerce and Industry, said the chief economic adviser's projected growth in gross domestic product might breach the upper end of the price band if US tariff issues get resolved.

If the government expenditure is sustained, it is likely that there will be a positive upside of the GDP growth to 6.9%, the upper end of the CEA band, Sankar said on Friday.

"If tariff issues get resolved, could breach that upside, which could be a great," the TVS Motor Co. board's independent director said.

Sankar was on a discussion panel hosted by NDTV Profit with other FICCI members, including FICCI President Harsha Vardhan Agarwal, and Senior Vice President Anant Goenka regarding the GST 2.0 pricing reforms.

Sankar said the impact of negativity around US tariffs were "overestimated", citing positive first quarter performance, which he also attributed to GST cuts and a favourable monsoon climate.

Sankar also brought attention to US Secretary of State's comments regarding India's importance as a partner to the US, calling it consequential and far reaching. "I think we're also very confident that the government did solve the US relationship issue," he added.

He also noted that the finance minister and the commerce minister have both gone on record, saying they'll not allow sectors such as gems and jewellery and fisheries, textile sector to suffer in the short run due to US tariffs.

"Hopefully it's a matter of few months with government support in the short run and the relationship (between India and US) being resolved in the medium term," the FICCI vice president said.

According to Sankar, in the long term, a partnership with the US is very important to India.

"It's (the partnership) had a few small blips but nothing that can't be overcome in the medium term," Sankar added.