Indian Economy To Grow Over 6.8% In FY23: CEA V Anantha Nageswaran

Chief Economic Advisor (CEA), V Anantha Nageswaran, on Wednesday said that Indian economy is on track to achieve 6.8-7 per cent GDP growth in FY23.

"Q2 GDP (growth) was in line with most market participants’ expectations. In 2022-23, the economy is on track to achieve 6.8-7 per cent growth," Nageswaran said.

"Indian economy has kept momentum despite global challenges thanks to important economic indicators including sales rebound over the festival season, robust tax revenues, credit growth, and capital formation in both the private and public sectors. In spite of lower consumption, capex was high in the first seven months of FY23," he added.

The chief economist stated that the improved balance sheets of the financial and non-financial business sectors as well as the expanding digital infrastructure of the nation have not been taken into account by international agencies when projecting the growth of the Indian economy.

He further said that the majority of international agencies base their estimates of India's growth on the most recent data from 2019 to 2020, and from 2021 onward, they continue to depend on lower capital creation. The forecasts from agencies do not adequately account for the fact that both the financial and non-financial sectors have improved their balance sheets. Additionally, digital infrastructure has been crucial in formalising the economy and improving financial access for many excluded sectors, though this impact is also unaccounted for.