India set to grow at 6.5% for rest of decade: CEA V Anantha Nageswaran

Chinese premier says economic growth target for the country is about 5 percent this year, on par with last year's rate. | World News

Our take is that the slowdown late last year will be temporary and even salutary, helping to wring some of the demand-side pressures out of the economy without stopping it wholesale. On the external front, better growth in the US and Europe's incipient recovery will propel India at the mid-year mark, Moody's Analytics said.

India's chief economic advisor, V Anantha Nageswaran, has urged for an upward revision of the country's FY24 growth forecasts to at least 7%, despite the National Statistics Office's forecast of 7.6%. The CEA believes sustained investment activity, healthy Rabi sowing, manufacturing profitability, and underlying services sector resilience will support economic activity in FY25.

"Overall, the economy ticks many boxes in the right way...so there is a case for international agencies to reappraise their estimate of potential GDP growth in India closer to 7 percent, if not above," he said.

India is poised to project a robust 7% economic growth for the 2023/24 fiscal year, surpassing earlier forecasts. The National Statistical Office is set to unveil its initial GDP estimates, widely expected to reflect an increased annual gross domestic product. The Reserve Bank of India's recent 7% growth projection aligns with positive high-frequency indicators in October and November. Prime Minister Narendra Modi's infrastructure investments aim to invigorate the economy, with analysts foreseeing a potential third-term win due to this strategy.

India economic growth likely accelerated to 7.7% in the April-June quarter, the fastest annual pace in a year, on robust service sector growth, strong demand and increased government capital expenditure, a Reuters poll found.

India’s economy grew by over 8% in the fiscal year to March 31, giving Prime Minister Narendra Modi a boost just hours before national elections draw to a close.

Gross domestic product probably rose 4.7% last quarter from a year ago, according to a median estimate of economists in a Bloomberg survey ahead of data due Tuesday at 5:30 p.m. local time. That will be the slowest quarterly performance since the 4.09% expansion in the three months ended March last year.

The finance ministry's Economic Survey has projected economic growth to be 6.5 per cent in the 2023-24 fiscal beginning April 2023, while the RBI has projected India's economic growth to slow down to 6.4 per cent in FY24 from 7 per cent in the previous fiscal.

The Chief Economic Advisor of India, V Anantha Nageswaran, has stated that private investment is taking place in the country and inflation is not a major concern. However, he highlighted that crude oil prices and tightening global monetary conditions pose risks. Nageswaran also mentioned that the geopolitical situation needs to be closely monitored, although it is not currently expected to have a significant economic impact. He expressed optimism about India's economic growth, citing a rebound in private sector capital investments.