Economic Survey 2023: Recovery Complete, Need To Look Ahead, Says CEA Nageswaran
Indian economy is poised to do better and is expected to grow 6.5-7 per cent in the remainder of the decade, said V Anantha Nageswaran
Chief Economic Advisor (CEA) V Anantha Nageswaran on Tuesday said that the recovery of economy is complete. During the press meet on the Economic Survey, Nageswaran mentioned that non-banking and corporate sectors now have healthy balance sheets. “Hence, we don't have to speak of pandemic recovery any more, we have to look ahead to the next phase,” the CEA said.
He said that leverage ratio in corporate sector went very sharply in first decade of millennium, second decade was thus a payback time, excessive credit growth had to be adjusted for in second decade, balance sheets now have been repaired, and credit growth is picking up
In its World Economic Outlook Update, IMF has maintained India's GDP forecast for current fiscal at 6.8 per cent, next fiscal at 6.1 per cent and for 2024-25 at 6.8 per cent. India's economy is poised to do better in the remainder of this decade, said Nageswaran, while adding that Indian economy is poised to do better and is expected to grow 6.5-7 per cent in the remainder of the decade.
Addressing reporters after the tabling of the Economic Survey in Parliament by Finance Minister Nirmala Sitharaman, Nageswaran said that by and large, inflation is likely to be "well behaved" in FY2023-24 barring headwinds.
The Economic Survey, which has been prepared by the CEA, stated that RBI's projection of retail inflation at 6.8 per cent in the current fiscal is neither too high to deter private consumption, nor so low as to weaken inducement to invest.
India's economy is projected to slow to 6.5 per cent in the fiscal year starting April but will remain the fastest-growing major economy in the world as it fared better in dealing with the extraordinary set of challenges the globe has faced, the Economic Survey 2022-23 said.
Nageswaran said as long as oil prices remain below $100 per barrel, the projected growth rate would remain undisturbed.
Nageswaran pointed out that the quality of public expenditure has gone up and the government has become more transparent with budget deficit numbers.
India’s agriculture sector has been witnessing robust growth with an average annual growth rate of 4.6 per cent over the last six years. This has enabled agriculture and allied activities sector to contribute significantly towards country’s overall growth, development and food security, says the Economic Survey 2022-23 tabled in the Parliament by the Union Minister of Finance and Corporate Affairs Nirmala Sitharaman on Tuesday.
Further in recent years the country has emerged as the net exporter of agricultural products, with exports in 2021-22 touching a record $50.2 billion.
Indian economy to grow at 6.5 per cent in 2023-24, according to the Economic Survey tabled in the Parliament by finance minister Nirmala Sitharaman. It said that in current year, the economy is projected to grow by 7 per cent. It will remain the fastest growing major economy in the world. It added that India is third-largest economy in the world in PPP (purchasing power parity) terms and fifth largest in terms of exchange rate. "Economy has nearly recouped what was lost, renewed what had paused; re-energised what had slowed during the pandemic.
On India's rupee depreciation amid global cues, Nageswaran said, "We don't make forecasts about the rupee."
Meanwhile, the rupee depreciated 52 paise to 82.04 against the US dollar in intra-day trade on January 31 after the Economic Survey 2022-23 said the domestic unit may remain under pressure on account of plateauing of exports and subsequent widening of the current account deficit.
Forex traders said significant foreign fund outflows and a muted trend in domestic equities also dented investor sentiments.
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