India to clock GDP growth of 6.5% in FY'24 despite rainfall deficit: CEA Nageswaran

livemint.com:

The Indian economy is likely to grow at 6.5% in the current fiscal despite deficient monsoon rainfall, chief economic advisor V Anantha Nageswaran said on Thursday. “There is no real cause for concern that inflation would spike out of control as both the government and the Reserve Bank are taking adequate steps to maintain supply and keep prices under check, reported PTI quoting the chief economic advisor.

Nageswaran said the food inflation is likely to subside with the arrival of fresh stock and government measures. However, he said the impact of deficient rains in August is to be watched.

"There is momentum in economic activity in general and it is not driven by price-related distortions. Therefore our projections still are very comfortably placed at 6.5 per cent for the current financial year," Nageswaran said.

Risk is evenly distributed to around 6.5% growth projection for FY2023-24, he said while briefing media following the release of first quarter GDP numbers, he said. “Rising crude prices may warrant attention and prolonged geopolitical uncertainty and likely tighter financial conditions can pose risk to growth," The chief economic advisor added.

India recorded economic growth of 7.8% in the April-June quarter of 2023-24 against 13.1% in the year-ago period. With regard to fiscal deficit, Nageswaran said there is no threat to 5.9% fiscal deficit announced in the Budget.