High chances for India's GDP to touch 8% in FY24, says CEA
V Anantha Nageswaran, the Chief Economic Advisor of India stated that there is a high possibility of India’s GDP reaching 8 percent growth in the financial year 2024.
"India is aiming at maintaining growth in the 6.5-7% range in the coming years”, said Nageswaran.
Recently, the global Monetary fund had attached the projection of India’s growth for FY24 at 7.8 %, somewhat higher than the Indian government’s projection of 7.7 percent.
Suppose the growth rate sustains to reach more than 7 percent, this would be the second successive year after the Pandemic hit that the Indian economy would have developed over 7 percent.
The GFCF – Gross fixed capital formation of India deteriorated for two years. But the CEA highlighted that there has been a notable recovery in FY22 & FY23 & the trend is expected to continue in FY24. GFCF signifies the overall value of the physical assets including equipment, buildings, machinery & infrastructure generated for the use in the construction process over a particular period in the nation. It deals the total stock increase of the fixed assets in the country’s economy.
Sharing the key insights on this matter, V Anantha Nageswaran, the Chief Economic Advisor of India states, "An ideal growth rate for the economy will be to grow between 9.5% and 10% like China did for over three decades after 1979 but the geopolitical context has shifted and therefore we need to be able to grow on the basis of domestic economy strengths, and whatever impediments are still there, we should look to remove them”.
Further he adds, "The economy is better placed than before to pursue non-inflationary growth”.
