India’s Chief Economic Advisor, V Anantha Nageswaran, has expressed optimism about India’s economic recovery during a special interactive session organized by FICCI. He said that India’s strong growth in the past two years has strengthened the country’s recovery from the pandemic-induced contraction. Despite lower growth figures reported in the third quarter of FY23, Nageswaran projected a real GDP growth of 6.5 percent for FY24, supported by the Ministry of Finance and the Reserve Bank of India.
Nageswaran emphasized that India’s growth potential is crucial to the global economy. He anticipates that India will become the third-largest economy in 2027 and expects the private sector’s capital expenditure to contribute a significant part to growth in the coming years. The Chief Economic Advisor highlighted the strong growth in India’s agriculture, industry, services, and construction sectors. He also noted that companies’ confidence in expansion is supported by post-pandemic rebound trends.
Despite the pandemic’s impact on private consumption, Nageswaran said that the trend line has caught up with pre-pandemic levels. He also acknowledged the government’s commitment to continue to be fiscally responsible while supporting the economic recovery. The Indian startup ecosystem is extending beyond metropolitan areas, promoting entrepreneurship and employment opportunities.
Nageswaran recognized the need for a managed transition from fossil fuels and emphasized the importance of educational reforms to harness India’s demographic dividend. Additionally, he highlighted the potential of increasing women’s participation in the economy as a crucial contributor to India’s economic growth.
FICCI Tamil Nadu State Council Chairman G S K Velu praised India’s resilience, highlighting its 7.2 percent GDP growth for 2022-23, which he said is among the fastest-growing major economies globally, demonstrating significant resilience amid worldwide downturns.
