India’s Chief Economic Advisor (CEA) Dr V Anantha Nageswaran on Saturday said that the country’s economy is poised to grow by 6.5 to 7% in the medium term until 2030. He also asserted that it was too early to rejoice the growth and the people must work hard to strengthen the economy, as the country faces global shocks with better balance sheets.
The CEA to the government said that India is in a stable situation and the growth momentum is good regardless of the multiple crises taking place globally. He was speaking virtually at the annual session of the Indian Chamber of Commerce (ICC). He said that the world is going through a ‘polycrisis’, which is multiple crises of high inflation, tightening of monetary policy, high interest rates, slowdown in China that has affected global supply chain, and the Russia-Ukraine war. Despite these challenges, India’s borrowing cost is lower than countries which have better ratings than India, he added.
Dr V Anantha Nageswaran credited the country’s better household, corporate and financial sector balance sheets for the good medium term growth outlook. India will have a growth rate of 6.5-7 per cent in 2022-23, which is considered to be good despite a high inflation rate of 7.4 per cent, he said.