‘In our economy, primary drivers have been domestic, and net exports don’t contribute much on demand side,’ says Economic Affairs secretary Anuradha Thakur

As pressure from the U.S. tariffs mounts, economic affairs secretary Anuradha Thakur has said that net exports are not major contributors to demand in the country, with domestic factors remaining the primary drivers.

“The primary drivers have been domestic and in our economy, in any case, net exports don't contribute so much on the demand side,” Anuradha Thakur, secretary, economic affairs, ministry of finance, told ANI.

A look at the expenditure components of GDP for Q1 FY2026 (at 2011-12 prices) can explain Thakur’s remarks. India remained a net importer in the April-June quarter, with imports exceeding exports by nearly ₹2.42 lakh crore in this period. Exports in the April-June quarter have grown by 6.3% year-over-year. This is comparatively lower than last year’s 8.3% in the same period. Meanwhile, imports rose 10.9% YoY in this quarter, compared to -1.6% in last year’s same quarter.

Additionally, Thakur said the latest figures reflect the economic resilience of the country, supported by the strong momentum and equally strong macroeconomic fundamentals such as inflation and fiscal deficit.

“In our view, it reflects the basic resilience of our economy. It reflects the strengthening of the momentum in the economy, and it is anchored in our strong macroeconomic fundamentals.”

Thakur, speaking to ANI on the factors behind the 7.8% GDP growth in Q1, highlighted supply-side drivers such as agriculture, manufacturing, and construction.

“On the supply side, we have seen an all-round growth in the manufacturing, construction and service side activities. As well as the fact that the agriculture side has shown robust growth. The Rabi harvest, as well as the Kharif sowing have been much in excess of the last quarters, and we have a good buffer stock. We have had a good rainfall, so that is also showing up the growth as well as the outlook on the demand side,” she said.