India is likely to register around 7 per cent economic growth this year. Nilesh Shah, a member of the Prime Minister’s Economic Advisory Council, said the second-quarter momentum looks good.

Shah spoke to ANI on the sidelines of the 5th Kautilya Economic Conclave on Saturday. He said growth should stay around 7 per cent in the future despite concerns over higher oil prices and deficient rainfall.

He warned that the West Asia crisis could hurt the economy through higher oil prices. Rising oil prices can push up inflation, raise interest rates, weaken the rupee, slow growth and cut corporate profits, he said.

On digital payments, Shah said the government has stated there is no merchant discount rate on UPI transactions below Rs 2,000. He called UPI one of the best payment systems in the world but added that maintaining it needs money.

His comments came as economists watch global uncertainty closely. India remains one of the fastest-growing major economies in the world.