2008 Was Just a Trailer? Global Slowdown Could Hit Harder, Last Longer, Says CEA

Chief Economic Adviser V. Anantha Nageswaran has given a warning that the ongoing global economic slowdown can last for a few years and its total effect could be more harmful than the 2008 global financial crisis.

Nageswaran emphasised that the situation today might not lead to a sudden collapse like in 2009 but could turn into a creeping crisis with long-term damage. "It would be overplaying things to say this will equal the intensity of 2008, but the average damage over several years may prove more debilitating," he said.

This, he credited to increasing worldwide uncertainty both economically and politically, which is compelling investors to stop capital investment and delay long-term investments.

In spite of the gloomy worldwide scenario, Nageswaran pointed out that India remained firm, recording a 6.5% GDP growth rate in FY 2024-25. In FY 2025-26, the government projects GDP growth to be between 6.3% and 6.8%, even in spite of the turbulent external environment.

He credited India’s stable performance to robust policy responses, skilled diplomacy, and focused trade and energy strategies. “India’s energy security was protected due to coordinated efforts by the Petroleum Ministry and diplomatic channels. We’ve ensured uninterrupted supply despite global disruptions,” Nageswaran said.

He underlined that India is working hard to convert the world crisis into an opportunity by lowering import tariffs to lower production costs, and making large investments in education, skilling, and strategic minerals to create long-term economic resilience.

"India is creating a niche as a trustworthy, neutral global partner. All nations wish to have good relations with India—such faith is our greatest strength," he asserted.

With the world struggling through an age of extended uncertainty, India's approach is simple, Nageswaran asserted: leverage global turmoil as a launching pad for long-term positioning in the economy.

"While the world tide is tempestuous, India is sailing steadily in its own direction," he concluded.

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