Indian economy to grow at 6.5-7% in FY25 on steady state basis: Chief Economic Advisor (CEA) Mr. V Anantha Nageswaran

Chief Economic Advisor (CEA) Mr. V Anantha Nageswaran announced that the Indian economy is expected to grow at a rate of 6.5-7% in the current financial year on a steady-state basis. Speaking virtually at an event organized by the Bengal Chamber of Commerce and Industry (BCCI), he noted that while the economy is projected to grow by 6.5% in real terms, the nominal growth rate, factoring in inflation, will be 11%. He commended this growth given the current global uncertainties. He attributed India's strong post-COVID recovery to prudent fiscal and monetary policies. He also highlighted the country's stable macro indicators, including increased capital expenditure, a declining external debt-to-GDP ratio, and lower retail inflation, which he believes warrants a credit system upgrade.

Looking ahead, he emphasised the importance of identifying domestic sources of growth, generating productive employment, ensuring food security, and easing regulatory barriers for MSMEs. He underscored the significance of MSMEs in non-farm job creation and stressed the need for small and medium firms to scale up to absorb more labour. He also called for increased female participation in the workforce, focusing on workplace safety and security. On artificial intelligence (AI), he cautioned that it could displace labour and urged for a balanced approach between technology adoption and social responsibilities.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.