Chief Economic Adviser V Anantha Nageswaran expressed his confidence in India's economic prospects, hinting that the nation might outperform the current projection of 10.5% growth.
“It's still early days. But on current trends, yes, it is reasonable to expect that we will do better than the projected 10.5%,” said Nageswaran in an interview with CNBC-TV18.
While acknowledging that the world is undergoing swift changes, Nageswaran emphasized that India's economy is on a positive trajectory.
One of the prominent challenges the Indian economy faces is the surge in Brent crude oil prices and the subsequent tightening of financial conditions. These developments have led to concerns, but Nageswaran believes that India can navigate through these challenges effectively.
“The world has been changing quite rapidly and not necessarily in the best of directions. There are uncertainties with respect to what is happening to the crude oil price. A couple of months ago it was $70/bbl and now it is $90/bbl; the Brent crude oil price, which matters to India. The global financial conditions are tightening and the fact that stock markets around the world don't seem to be getting it, is actually a cause for concern,” he said.
Crude prices have jumped close to 6% since the start of the Israel-Hamas conflict. Experts have warned against a significant surge in prices if the currently-local conflict escalates.
Talking about net exports, Nageswaran indicated that this time the net exports might not play a pivotal role in the growth story. Instead, other dynamics are shaping India's economic outlook.
According to him, money on the ground is being put to work, with investments on the upswing. He said, “I am quite confident that private sector capital formation is not a futuristic story, but a current story. It is unfolding as we speak. So, I am confident, therefore, that these domestic drivers would pick up whatever slack that may arise from the external side.”
CRISIL's just-released Infrastructure Yearbook 2023 forecasts a significant surge in India's infrastructure spending over the next seven years. The investment is projected to double by 2030, reaching an estimated Rs 142.9 lakh crore from Rs 66.7 lakh crore during 2017-2023. While government funding dominates, the private sector is pivoting towards the energy and transportation domains
For more details, watch the accompanying video
(Edited by : Shweta Mungre)
First Published: Oct 17, 2023 5:22 PM IST
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