CEA Nageswaran: No Surprises Expected on Inflation, Monsoon to Ease Rates

Chief Economic Adviser V Anantha Nageswaran foresees no unpleasant surprises in India’s inflation rate, which is anticipated to ease to 4 percent during the monsoon season. Nageswaran expressed optimism, predicting a potential GDP growth rate of 8 percent for FY24.

On the growth beyond FY25, CEA Nageswaran said, there is a possibility of India growing between 6.5-7 per cent.

Addressing the recent decline in net financial household savings, Nageswaran highlighted a notable shift towards real assets, reflecting changing investment preferences.

Despite fluctuations in global economic conditions, Nageswaran remains confident in India’s ability to achieve non-inflationary growth, crediting investments in physical and digital infrastructure. He emphasized the importance of sustainable tax revenue growth, indicating a positive trend in tax-to-GDP ratios.

Looking ahead, Nageswaran underscored the significance of monsoon patterns for economic performance, emphasizing the need for favorable spatial and temporal distribution. He outlined a vision for sustained growth, highlighting the strengthening of balance sheets in both financial and non-financial sectors.

Nageswaran’s insights were echoed by NCAER Director General Poonam Gupta, who emphasized India’s resilient GDP growth amidst global economic shifts. With a positive global outlook and domestic strengths, Gupta anticipates India to sustain a growth rate of 7 percent or higher in the coming years.

As India navigates economic challenges and opportunities, Nageswaran and Gupta’s perspectives provide valuable insights into the nation’s economic trajectory and potential for growth.