country’s economy
When America had imposed 50 percent tariff on India, the country’s Chief Economic Advisor V. Ananth Nageswaran had estimated the country’s GDP growth at 6 percent. CEA had underestimated the country’s growth by reducing its earlier estimate of 6.3 percent. Now that a big work has been done in the country in the form of GST reform. Due to which the country’s growth and economic indicators have got a boost, now they have again changed their estimates. He has now said that the country is facing global challenges very well. In such a situation, the country’s growth rate may be 7 percent in the current financial year. Let us also tell you what he said…
increase in credibility
Chief Economic Advisor (CEA) V. Ananth Nageswaran said on Wednesday that the Indian economy has faced global challenges satisfactorily. He expressed confidence that in the financial year 2025-26, the growth rate of Gross Domestic Product (GDP) based on the base year 2011-12 can reach seven percent. Nageswaran said at the India Maritime Week (IMW) here that three global rating agencies have recently upgraded India’s credit rating and if the country continues to move ahead on this path, it may soon come in the A rating category. Nageswaran, an academician turned policy advisor, said the resurgence of the economy coupled with the steps taken by the government and the Reserve Bank of India (RBI) have kept the Indian economy in a ‘comfortable position’.
What gave strength to GDP?
He said that we should be quite satisfied with the attitude of the Indian economy in dealing with global uncertainties and tariff related developments this year. The Chief Economic Advisor said that policy measures including income tax relief and rationalization of Goods and Services Tax (GST) have improved this year’s economic growth prospects to around seven percent in real terms for the financial year 2025-26.
Earlier the estimate was reduced
Nageswaran had estimated in February that in the current financial year, based on the base year 2011-12, the growth rate of Gross Domestic Product (GDP) could be up to 6.3 percent. However, due to American duty, he further reduced it to six percent. However, timely policy steps taken to strengthen the economy and boost demand have actually put us in a very comfortable position, he said.
Gave answer on this also
Responding to the criticism of sluggishness in bank credit growth, he said that to reach any conclusion, we should look at the total resources raised in the economy which also includes funds raised through non-bank lenders, commercial paper, certificates of deposits, equity markets etc. Citing RBI data, he said that in the last six years, the total resource mobilization in the economy has increased by 28.5 percent annually. This comment comes at a time when there is widespread concern over sluggish growth in private capital expenditure. Nageswaran stressed that the RBI has cut policy interest rates and taken liquidity measures to ensure adequate availability of funds in the economy.