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On Thursday, Chief Economic Advisor V Anantha Nageswaran stated that the Indian economy is projected to grow at a rate of 6.5 percent in the current fiscal year, ending on March 31, 2024. Nageswaran emphasized the coming decade's uncertainty, highlighting the crucial role of corporate sector investments in initiating a positive cycle of employment generation and economic growth. He stressed the importance of conservative financial planning within the finance ministry, considering factors such as nominal GDP growth assumptions and revenue growth buoyancy.
Speaking at an event organized by the Confederation of Indian Industry (CII), Nageswaran expressed a commitment to conservative planning while aiming for an average real GDP growth of 6.5 percent, allowing for positive surprises. The Indian economy had achieved a growth rate of 7.2 percent in the fiscal year 2022-23, with the Reserve Bank also anticipating a growth rate of 6.5 percent in the current fiscal year.
The September quarter of the ongoing fiscal year witnessed India's economy growing by 7.6 percent, maintaining its status as the fastest-growing large economy. This growth was attributed to improved performance in manufacturing, mining, and services sectors.
Various international organizations, including the IMF, World Bank, ADB, and Fitch, anticipate India's GDP to expand by 6.3 percent in the current fiscal year. S&P Global Ratings expects a growth rate of 6.4 percent. Nageswaran indicated that a shift towards increased investments and manufacturing is anticipated, provided the investment cycle gains momentum, akin to the pattern observed in the first decade of the millennium. He highlighted that the necessary conditions for this rebalancing act are already in place.
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