Ira Singh
Khabar Khabaron Ki,09 May’24
The fundamentals in Indian economy are strong and likely to translate into positive growth. The optimism expressed by India’s Chief Economic Advisor, V. Anantha Nageswaran on Wednesday,seems to suggest that there is a strong possibility that India’s growth rate surpassed 8% in the FY24 . This optimistic projection is supported by the robust growth witnessed across the three quarters of the financial year ending in March 2024. Furthermore, he anticipates that the economy will continue its upward trajectory, expanding by more than 7% in the current financial year.
He asserted that India has the potential to maintain a growth rate of more than 6.5%-7% for the next decade. Nageswaran emphasized that this sustained growth would be underpinned by substantial investments in both physical and digital infrastructure.
Nageswaran’s remarks come as India continues to prioritize infrastructure development as a key driver of economic expansion and modernization. The government’s focus on enhancing physical infrastructure, such as roads, railways, ports, and airports, is complemented by significant investments in digital infrastructure, including broadband connectivity, digital payment systems, and e-governance initiatives.
Other highlights of Nageswaran’s speech:
●Growth can accelerate further if India focuses on reducing the compliance burden for businesses, focus on investments to improve the skills of young people.
●The economy is showing signs of pick up in private investment.
●India’s inflation should settle around the central bank’s target 4% in the current fiscal year, and he doesn’t see a scope for “nasty upside surprises”
While uncertainties persist, India’s economic prospects appear promising, buoyed by favorable projections and proactive policy measures. The convergence of conducive factors, including supportive monetary policies and structural reforms, could pave the way for sustained growth and development in the world’s largest democracy.As Nageswaran aptly noted, the forthcoming rainfall patterns will be instrumental in shaping India’s growth trajectory, underscoring the interconnectedness of economic performance and environmental factors in the country’s development narrative.