New Delhi, Chief Economic Advisor V Ananth Nageswaran on Wednesday said there is a high possibility of GDP growth reaching 8 per cent in FY2024 due to the strong growth recorded during the three quarters of the financial year ending March 2024. .
India's gross domestic product (GDP) grew by 8.4 percent in the third quarter ending December 2023. GDP growth in the second quarter was 7.6 percent while in the first quarter it was 7.8 percent.
He said, "The IMF has projected a growth rate of 7.8 percent for fiscal year 2024. But if you look at the growth trajectory in the first three quarters, obviously the chances are quite high that the growth rate will reach 8 percent." Will go.“An event was organized here by NCAER.
This is higher than the RBI's projection of 7.5 per cent growth for the Indian economy in 2023-24.
For the current fiscal year, he said, the International Monetary Fund's estimate is 6.8 percent, but the Reserve Bank of India expects 7 percent GD growth for FY20.
“If that happens, of course, it will be the fourth consecutive year since COVID starting FY20 when the economy will grow at 7 per cent or more. RBI's 7 per cent for FY20 The percentage estimates have either proved to be correct or have been underestimates., so this will be the fourth consecutive year of 7th or higher growth rate.
However, he said, a lot will depend on how the monsoon fares. Although expectations are that there will be a higher than normal monsoon, the spatial and temporal distribution will matter.
On growth beyond FY2025, he said, India's growth rate is likely to be between 6.5-7 per cent as the main difference in this decade compared to the last decade is the strength of the balance sheet in the financial sector and the non-financial sector. . Corporate sector also.
Investments in supply-side growth of both physical and digital infrastructure have positioned the economy to pursue non-inflationary growth, he said, adding that this also helps absorb the challenge of overheating.He also said the net financial savings inflow of the household sector was likely to decline to 5.1 per cent in 2022-23 as a larger share of savings shifted to the real sector.
Asked about RBI's recent circular on under-construction infra project financing, he said, "This is a draft guideline and I would not like to comment on it."
The Reserve Bank of India (RBI) last week proposed to lenders to set aside higher provisions for under-construction infrastructure projects and asked them to ensure strict monitoring of any emerging stress.
As per the draft norms, RBI proposed that lenders keep aside a percentage of the loan amount. This will be reduced to 2.5 percent once a project is commissioned.At present, lenders are required to make a provision of 0.4 per cent on project loans that are not overdue or stressed. -- Dr
India's gross domestic product (GDP) grew by 8.4 percent in the third quarter ending December 2023. GDP growth in the second quarter was 7.6 percent while in the first quarter it was 7.8 percent.
He said, "The IMF has projected a growth rate of 7.8 percent for fiscal year 2024. But if you look at the growth trajectory in the first three quarters, obviously the chances are quite high that the growth rate will reach 8 percent." Will go.“An event was organized here by NCAER.
This is higher than the RBI's projection of 7.5 per cent growth for the Indian economy in 2023-24.
For the current fiscal year, he said, the International Monetary Fund's estimate is 6.8 percent, but the Reserve Bank of India expects 7 percent GD growth for FY20.
“If that happens, of course, it will be the fourth consecutive year since COVID starting FY20 when the economy will grow at 7 per cent or more. RBI's 7 per cent for FY20 The percentage estimates have either proved to be correct or have been underestimates., so this will be the fourth consecutive year of 7th or higher growth rate.
However, he said, a lot will depend on how the monsoon fares. Although expectations are that there will be a higher than normal monsoon, the spatial and temporal distribution will matter.
On growth beyond FY2025, he said, India's growth rate is likely to be between 6.5-7 per cent as the main difference in this decade compared to the last decade is the strength of the balance sheet in the financial sector and the non-financial sector. . Corporate sector also.
Investments in supply-side growth of both physical and digital infrastructure have positioned the economy to pursue non-inflationary growth, he said, adding that this also helps absorb the challenge of overheating.He also said the net financial savings inflow of the household sector was likely to decline to 5.1 per cent in 2022-23 as a larger share of savings shifted to the real sector.
Asked about RBI's recent circular on under-construction infra project financing, he said, "This is a draft guideline and I would not like to comment on it."
The Reserve Bank of India (RBI) last week proposed to lenders to set aside higher provisions for under-construction infrastructure projects and asked them to ensure strict monitoring of any emerging stress.
As per the draft norms, RBI proposed that lenders keep aside a percentage of the loan amount. This will be reduced to 2.5 percent once a project is commissioned.At present, lenders are required to make a provision of 0.4 per cent on project loans that are not overdue or stressed. -- Dr
