India's GDP growth for FY23 likely to be over 7.2%, says CEA Mr. V Anantha Nageswaran
- IBEF
- June 12, 2023
Chief Economic Advisor Mr. V Anantha Nageswaran expressed optimism that India's GDP growth in FY23 might be greater than 7.2% when concluded in February 2026.
At a seminar on "The Decade of India's Growth and Prosperity - the Beginning" hosted by the Bharat Chamber of Commerce in Kolkata, the CEA said “India’s GDP growth estimates are presented six times, the final estimate for FY23 will be with us in January-February 2026. And my expectation and belief are that when the final number for FY23 is frozen in February 2026, it will be more than 7.2%”.
According to provisional projections issued by the National Statistical Office (NSO), overall economic growth in FY23 would be 7.2%. It was propelled by stronger-than-expected fourth-quarter growth.
According to Mr. Nageswaran, India's GDP growth rate (6.1%) in the fourth quarter was higher than that of other top developing and developed countries. He attributed FY23 GDP growth to "robust" private consumption and a sustained increase in capital formation.
Mr. Nageswaran expressed optimism about the economy's prospects beyond FY24 and into the medium term. The reasons for the confidence were robust business and banking balance sheets, an increase in capital expenditure, and the digitalisation of the economy.
He claims that during the previous decade, the Indian corporate, banking, and non-financial sectors have reduced debt, making their balance sheets leaner, meaner, and stronger. However, corporations were now eager to invest, and banks were willing to lend.
In response to a question on the influence of artificial intelligence (AI) technologies like ChatGPT on jobs, the CEA stated that at this time, it may be a source of growth for a country like India. The CEA also stated that it may have long-term ramifications for industries and job creation. He stated that a multi-pronged approach was required to maximise its benefits while minimising its negative effects.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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