Indian economy projected to grow 6.5-7% in FY 2024-25: Chief economic advisor Nageswaran

Chief economic advisor V Anantha Nageswaran said on Friday that the Indian economy is projected to grow by 6.5-7% in the current financial year. Speaking at an event hosted by the Bengal Chamber of Commerce and Industry, Nageswaran said that this growth rate is significant given the global economic conditions.

According to Nageswaran, the real growth rate of 6.5% will translate to a nominal growth rate of 11% when inflation is taken into account. He credited India’s fiscal and monetary policies for this optimistic outlook, emphasizing that these measures have solidified the post-Covid recovery.

"The Indian economy is poised to remain the fastest-growing in the current financial year, with a growth rate of 6.5-7% on a steady-state basis. This is a significant achievement in the current global context," he said.

He noted that India's macroeconomic indicators show stability, with a shift towards capital expenditure, a decline in the external debt-to-GDP ratio, and lower retail inflation. Nageswaran indicated that these factors warrant a credit system upgrade for the country.

The chief economic advisor said that India need to focus on generating productive employment, ensuring food security, easing regulatory challenges for MSMEs, and improving financial resource allocation. He also stressed the importance of the MSME sector's development and job creation.

Nageswaran discussed the significance of women's participation in the workforce and the necessity of ensuring their safety and security in workplaces.

On the topic of artificial intelligence, he pointed out its potential to displace labor, saying, "An appropriate balance has to be struck between technology and labor, keeping social responsibilities in mind."

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