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New Delhi, Jan 31 (PTI) The golden era of globalisation probably disappearing amid geopolitical and policy uncertainties, resulting in the economic growth slowdown, Chief Economic Adviser V Anantha Nageswaran said on Friday.

India’s economy is likely to expand by 6.3-6.8 per cent in the coming fiscal, much lower than what is needed to become a developed country, and requires deregulation and reforms in areas like land and labour to stimulate growth, according to the government’s pre-Budget Economic Survey.

“The era of globalisation is over…tailwind of globalisation is becoming more of a headwind…there is geopolitical and policy uncertainty both on the investment front and on the trade side, and the growth projections also reflect that,” he told PTI in an interview.

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The state of the economy document, tabled in Parliament by Finance Minister Nirmala Sitharaman on Friday, indicated that India’s world-beating growth is moderating and more needs to be done to achieve the near 8 per cent annual rate needed to achieve the Viksit Bharat target by 2047.

The 6.3 per cent to 6.8 per cent growth rate in 2025-26 (April 2025 to March 2026 fiscal year) compares to an estimated 6.4 per cent growth in the current year ending March 31 – the weakest since the pandemic – and 8.2 per cent in the past 2023-24 financial year.

Blaming external sector for the slowdown, Nageswaran said, “The golden era from 1980 onwards, which probably was until 2016 when you had era of globalisation where trade flow of as share of GDP went up, investment flows as percentage global GDP went up, poverty reduction happened, and there was free movement of goods and services and even people, but that is drawing to an end”.

He, however, hoped that there could be other forces coming into play which could provide tailwind in the coming years.

“Right now, we are in a state of flux that is what we have to take into account in our planning and in our policy framework for growth, which will take care of India’s aspiration given this global environment,” he said.

The survey said India needs to grow at nearly 8 per cent over the next decade or two, and the investment rate must rise to 35 per cent of GDP from the current 31 per cent to meet the longer-term economic goal of a developed nation by 2047.

The IMF projects India to be a USD 5 trillion economy by FY28 and USD 6.3 trillion by FY30, with an annual nominal growth rate of 10.2 per cent in USD terms.

Calling for reinvigorating the internal engines of growth by enhancing economic freedom through deregulation, the report called for states to reduce the cost of compliance by liberalising standards and controls on businesses as well as cutting tariffs and feeds. PTI DP DP BAL BAL

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