Chances are “quite high” that India’s growth exceeded 8% in the fiscal year that ended in March and the economy will likely expand more than 7% in the current financial year, he said. The rainfall pattern in the months ahead will be crucial for the growth outlook, he said.
India’s economy can sustain growth of more than 6.5%-7% for a decade, supported by investment in physical and digital infrastructure, the country’s Chief Economic Advisor V. Anantha Nageswaran said.
“The omens are good for us to continue the steady growth rate” of that pace over the next decade, Nageswaran said at an event hosted by the National Council of Applied Economic Research in New Delhi on Wednesday.
Chances are “quite high” that India’s growth exceeded 8% in the fiscal year that ended in March and the economy will likely expand more than 7% in the current financial year, he said. The rainfall pattern in the months ahead will be crucial for the growth outlook, he said.
Other highlights of Nageswaran’s speech:
- Growth can accelerate further if India focuses on reducing the compliance burden for businesses, focus on investments to improve the skills of young people
- The economy is showing signs of pick up in private investment
- India’s inflation should settle around the central bank’s target 4% in the current fiscal year, and he doesn’t see a scope for “nasty upside surprises”
