7.6 per cent Q2 GDP growth bodes well, CEA Nageswaran sees FY24 rise at 6.5 per cent
real growth rate of 7.6% in the September quarter holds India in good stead to realise the projected growth rate of 6.5% in FY24, chief economic advisor (CEA) V Anantha Nageswaran said on Thursday, adding that any possible upside to the full-year forecast in the wake of the latest robust performance would be worked out.
Addressing the media after the release of GDP data, Nageswaran also highlighted that tax revenue has grown at almost double the pace of nominal GDP expansion in the first half of FY24, which is unusual.
This, he said, is prompting him to wonder if the nominal growth rate has been understated. It's certainly not overstated, as is the perception in certain quarters, he asserted.
The nominal GDP grew 8.6% (without adjusting for inflation) in the first half of this fiscal, while the tax revenue rose 16.3%.
«We will keep the (real) GDP growth estimate at 6.5% but we are more comfortable (with the projection) than before.
We need to work out the impact of second-quarter numbers on the full fiscal. The momentum of economic growth will continue in the third quarter as well,» Nageswaran said.
The Reserve Bank of India has projected India's economic growth at 6.5% for FY24, while the International Monetary Fund has pegged it at 6.3%.
The CEA said private investment has started picking up, as funds intended for capital expenditure (capex) raised by companies through various channels-from banks, financial institutions, external commercial borrowings, and initial public offerings-during the second half of this fiscal were 60% higher than a year earlier.
He said India continues to be an outlier amid global turmoil, as it remained the fastest growing major economy in September quarter as well.
