homeeconomy NewsIndia aims to lower fiscal deficit to 5.8% this year, expects 10.5% nominal GDP growth in dollar terms
India aims to lower fiscal deficit to 5.8% this year, expects 10.5% nominal GDP growth in dollar terms
Goyal commended the interim budget for outlining a clear path for fiscal consolidation, describing it as a positive step towards a brighter future for the impoverished and a foundation for a resilient macroeconomy, maintaining stable interest rates and inflation.
Describing the interim budget 2024 as progressive and brimming with hope for the aspirations of a young India, Commerce and Industry Minister Piyush Goyal said that the last year's fiscal deficit has not only been maintained but improved, achieving a fiscal deficit of 5.8%. Goyal projected a further decline in the fiscal deficit to 5.1% this year and a notable reduction to 4.5% by the next year.
Speaking to CNBC-TV18, Goyal asserted that the budget adheres to fiscal prudence, striving to keep macroeconomic parameters stable and robust. He attributed the lower fiscal deficit to the effective utilisation of borrowed funds for infrastructure development, praising the allocation of ₹11,000 crores for this purpose as "phenomenal."
Goyal commended the interim budget for outlining a clear path for fiscal consolidation, describing it as a positive step towards a brighter future for the impoverished and a foundation for a resilient macroeconomy, maintaining stable interest rates and inflation. The move will ensure that India continues to see greater buoyancy in forex earnings and stability in Rupee.
The minister highlighted the expectation of a 10.5% nominal growth in India's GDP in dollar terms for the current year, ensuring greater buoyancy in forex earnings and currency stability.
Acknowledging the geopolitical situation and the rise in interest rates globally impacting short-term FDI, Goyal assured continued government support for Indian exporters within the framework of international policies and agreed-upon positions. While underscoring the budget's focus on uplifting the poor, empowering youth, promoting women-led development, and augmenting farmers' incomes, he emphasized that initiatives like skill development, and sector-specific advancements in tourism, fisheries, and animal husbandry, along with a concentrated emphasis on infrastructure, will propel India's economic growth.
Attributing the surge in FDI since 2014 to global trust in Prime Minister Modi's decisive and honest leadership, Goyal declared that the India opportunity remains compelling, driven by the 3Ds of democracy, demography, and diversity, resulting in increased demand on the global stage.
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