Indian economy off to a good start in September quarter, govt maintaining FY24 GDP target of 6.5%: CEA Nageswaran
V. Anantha Nageswaran termed the first quarter GDP growth of 7.8% as a «good number» and said that the government is comfortable maintaining GDP growth target of 6.5% for FY24.
He was addressing the media after government released April-June quarter GDP data which showed that India's economy grew at its quickest pace in a year in the April-June quarter, buoyed by strong services activity and robust demand.
Gross domestic product (GDP) expanded 7.8% on an annual basis in the second quarter of 2023, accelerating from 6.1% growth recorded in the first quarter and topping a 7.7% forecast in a Reuters poll.
The chief economic advisor also said that high frequency indicators for July show that the economy is off to a good start in the second quarter and all indicators point at the continuation of good growth in the services sector in the coming quarters.
Here is what the chief economic advisor said:
Govt's sustained capital expenditure push is crowing in private investments
New investment projects announced by the private sector in the June quarter were the highest in 14 years. Private investment is not waiting to take off but it has already taken off
There is no real concern that inflation will spike out of control.
Both the govt and the RBI are taking measures to control inflation. Core inflation is declining and spike in food inflation is transitory
Credit growth remains high
There is a greater focus on expenditure management.
Fiscal deficit up to July is also driven by Covid-related expenditure
Current account deficit is well within the tolerance level. Slowdown in merchandise exports is partly offset by a rise in services exports
Several high-frequency indicators for July signal a good start to the second quarter of FY24
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