Chief Economic Advisor V Anantha Nageswaran on Wednesday mentioned medium-term fundamentals of the financial system stay stable and India is a lot better positioned than many different international locations on the planet to face present challenges.Speaking on the finance ministry’s iconic week celebrations of ‘Azadi ka Amrit Mahotsav’, Nageswaran mentioned India has emerged out of the earlier decade with its monetary system properly repaired, improved, and robust stability sheet.
The CEA mentioned, this 12 months India might be dealing with challenges of managing a sustainable excessive progress, moderating inflation, conserving fiscal deficit underneath stability and in addition guaranteeing that the exterior worth of the Indian rupee stays identical.”We want to grasp that the medium-term fundamentals of the Indian financial system stay stable and the Indian financial system is a lot better positioned than many others on this world to face the challenges that we’re at present encountering,” Nageswaran mentioned.He mentioned there could possibly be no “pre-programmed road map or menu of options” to assist the nation take care of these challenges, although the finance ministry is well-prepared to sort out any such scenario.
“I also implore you to look beyond current concerns about inflation…Some of these structural reforms … such as Goods and Services Tax, Insolvency and Bankruptcy Code (IBC) etc might have been temporarily overshadowed by external events such as the pandemic and now the geopolitical conflict. However, once these clouds recede they will begin to manifest and enhance India’s growth,” Nageswaran mentioned.His feedback got here quickly after the Reserve Bank hiked key rate of interest by 50 foundation factors to tame inflation. The central financial institution upped inflation projection to six.7 per cent, whereas sustaining progress estimate at 7.2 per cent for present fiscal 12 months.
Nageswaran mentioned IMF has forecast the Indian financial system to cross USD 5 trillion by 2026-27. India’s Gross home product (GDP) in greenback phrases has already crossed USD 3 trillion.”If the greenback GDP of the nation doubles each 7 years, we might be at USD 20 trillion GDP by 2040 with a per capita earnings of near USD 15,000,” he mentioned.India’s financial system grew 8.7 per cent in final fiscal 12 months (2021-22), as towards 6.6 per cent contraction in earlier 12 months.
In its third financial coverage of 2022-23, the Reserve Bank on Wednesday retained its GDP progress forecast at 7.2 per cent for present fiscal 12 months however cautioned towards unfavourable spillovers of geopolitical tensions and a slowdown within the world financial system.It mentioned there are indications that the restoration in home financial exercise stays agency, with progress impulses getting more and more broad-based.
Source: www.financialexpress.com”