India expects FY25 growth of over 7%, says Chief Economic Adviser, Mr. V Anantha Nageswaran

Chief Economic Adviser Mr. V Anantha Nageswaran is optimistic about India's GDP growth potentially hitting 8% in FY24, driven by robust performance in the first three quarters, notably 8.4% in the third quarter and 7.6% in the second quarter, surpassing IMF's 7.8% projection, and RBI's 7.5% estimate. Looking ahead, he highlighted IMF's forecast of 6.8% growth for FY25, contrasting with RBI's 7% expectation, while stressing the significance of monsoon patterns and the potential for sustained growth between 6.5-7% beyond FY25, attributed to improved balance sheets in financial and non-financial sectors.

He refrained from detailed comments on recent RBI guidelines on infrastructure project financing, acknowledging them as draft guidelines. The proposed provisions entail setting aside 5% of loan amounts for under-construction projects, reducing to 2.5% post-completion, to ensure prudent risk management amidst evolving economic conditions.

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