NEW DELHI: The country's economy is projected to grow by 6.4-6.7% during the current financial year, Rajiv Memani, newly appointed president of Confederation of Indian Industry (CII), said on Thursday but cautioned that geopolitical uncertainty could pose a risk to the forecast.

"At a time when global economic and political volatility is at its highest in over two decades, India stands out as a bright spot," Memani said. In his first news conference after taking over as CII president, Memani also suggested a raft of reform measures that could be undertaken to accelerate growth. He also backed rationalisation of GST rates and a move towards a three-tiered rate structure, with essential goods under 5% slab, luxury and sin goods at 28%, and placing all other items within 12-18% range.

Memani cited a number of factors that are supporting growth, including a favourable monsoon outlook, enhanced liquidity after RBI's rate cuts.Regarding the proposed India-US Free Trade Agreement, Memani said: "We will not have 100% winners," stating that CII has advocated for a "balanced and reasonable" approach. He said sensitive sectors, such as agriculture and dairy, might be excluded from the initial agreement, which is expected to be implemented in phases as areas with significant political implications would be addressed at a later stage.

Memani also expressed concerns over shortage of critical minerals in the auto sector and said the issue is more serious than it appears, with some auto companies already planning to cut production. He stressed the importance of India identifying and addressing critical supply chain dependencies, as well as upskilling its workforce to better align with industry demands.