Nilesh Shah Projects 7% Growth for India Economy
Nilesh Shah projects India will maintain 7% economic growth while arguing for the introduction of fees for certain UPI transactions to ensure service quality.
Member of the Prime Minister's Economic Advisory Council Nilesh Shah projected that India will maintain an economic growth rate of approximately 7% this year. Speaking at the 5th Kautilya Economic Conclave, Shah noted that while second-quarter momentum remains strong, the economy faces risks from deficient rainfall and rising oil prices driven by the West Asia crisis.
Shah warned that higher oil costs could trigger inflation, increase interest rates, weaken the rupee, and reduce corporate profitability. He emphasized that these external pressures could impact the overall stability of the economic trajectory.
Additionally, Shah addressed the funding of the Unified Payments Interface (UPI). While transactions under Rs 2,000 currently remain free, he argued that the government cannot sustain the system indefinitely without financial resources. Comparing the need for UPI charges to toll payments for road maintenance, he stated that quality service requires payment and suggested the implementation of a Merchant Discount Rate (MDR).
