India’s FY24 growth to reach 6.5-75%: CEA

India is expected to experience a growth rate between 6.5% and 7.5% in FY24, according to Chief Economic Advisor V Anantha Nageswaran, while speaking at a Confederation of Indian Industry event in Lucknow. This positive outlook was attributed to the strong growth momentum in investments and the efficiency gains resulting from the digital transformation of the economy. 

Nageshwaran also mentioned the possibility of upward revisions to the reported 7.2% GDP growth for the fiscal year 2023 during data revisions. He further expressed confidence in India’s ability to sustain long-term growth, while attributing this potential to sound economic policies, the development of infrastructure over the past eight years, and the gains from digitization. 

According to Nageshwaran, India has the potential to maintain steady growth between 6.5% and 7.0% until 2030. Furthermore, with additional reforms such as skill development and factor market reforms, the growth rate could potentially reach 7.0-7.5% and even 8%.

The CEA emphasized the importance of maintaining sustainable economic growth and highlighted the government’s focus on increasing investments rather than revenue expenditure as the best approach for economic development.

The previous instances of strong economic growth in India were often followed by challenges such as high inflation, increased imports, and an expensive currency. However, the current sound economic policies, infrastructure development, and digital transformation would enable India to sustain long-term growth, similar to China’s experience between 1979 and 2008.

Regarding capital expenditure (Capex), Nageswaran mentioned that the private sector is expected to witness stronger investment growth due to improved corporate and bank balance sheets, as well as government support for capex initiatives.

Source: Economic Times