New Delhi: Chief Economic Advisor (CEA) V. Ananth Nageswaran on Friday said the economy is expected to grow in the range of 6.5 per cent to 7.5 per cent in the current fiscal, driven by the strong growth momentum seen in investment and efficiency gains from a faster pace of investment. You get strength. digital transformation.
He further said that it is important to maintain economic growth while ensuring stability, and that the government has increased investment on land rather than revenue expenditure.
This is the best way to develop the economy, he said.
Speaking at an event on “Building a Resilient Economy” with various industrialists in Lucknow, the CEA said the Indian corporate sector has improved its balance sheet, reduced debt and increased profitability.
He further said that due to India’s sound economic policy, infrastructure built in the last eight years and digital transformation, it is possible for India to grow for a longer period without problems of overheating instead of three to four years.
He also said that India has the potential to grow at a modest 10-11 per cent.
Nageswaran said the economy is in a state of autopilot, bouncing back impressively after the pandemic, and in all likelihood the 2022-23 GDP growth forecast of 7.2 per cent will be revised upwards in subsequent data revisions.
“Between now and 2030, based on what we have done so far, even assuming that further improvements are made, I can say that we have the potential to grow at a sustained rate of between 6.5 and 7.0 percent if we focus on skilling. Add additional reforms, market correction along with other factors, we can go up to 7 to 7.5 per cent and possibly even up to 8 per cent,” he added.
On capex, the CEA noted that the private sector is set to achieve robust investment growth following strengthening of corporate balance sheets and stronger bank balance sheets, which improved their ability to lend and support the government’s capex push Is.
He said that in the medium term, investment will continue to be a key driver of growth.