India Eyes 7 pc Growth In H2 FY24: Chief Economic Advisor

New Delhi, Dec 6 (KNN) India's economic trajectory remains promising, with Chief Economic Advisor V Anantha Nageswaran expressing confidence that the country can achieve a growth rate of 7 per cent in the second half of the current financial year. 

Speaking at an Assocham industry event, Nageswaran projected that this could potentially lift the full-year growth rate to at least 6.5 per cent.

Despite concerns following the GDP growth of 5.4 per cent in July-September, the lowest in seven quarters, the finance ministry's top economist remains optimistic. 

The first half of the fiscal year has already registered a 6 per cent growth, and Nageswaran suggested that the second-quarter GDP growth rate might be revised upward, as current estimates are not seasonally adjusted.

The advisor emphasised the importance of domestic economic drivers, noting that global factors remain challenging for export growth. 

He highlighted the need for the private sector to balance capital-intensive and labour-intensive growth, particularly in light of the Economic Survey's estimate that India needs to create 8 million jobs annually.

In a notable assessment of corporate performance, Nageswaran stated that the Indian corporate sector has experienced unprecedented profitability in the last four years. 

Private sector profitability reached a 15-year high of 4.8 per cent of GDP in March 2024, a remarkable achievement considering post-COVID challenges and the complex global economic environment.

Addressing industry concerns, the chief economic advisor promised continued deregulation in the upcoming economic survey for 2024-25. 

He also called on large corporations to be more supportive of Micro, Small, and Medium Enterprises (MSMEs), pointing out that the current financial dynamics often see large corporates using smaller enterprises as sources of finance rather than supporting them.

The Reserve Bank of India had previously projected a growth rate of 7.2 per cent for the fiscal year, and Nageswaran believes that a growth outcome between 6.5 per cent and 7 per cent is feasible. 

He urged the corporate sector to seize the current economic momentum by investing and creating employment opportunities.

This optimistic outlook comes at a crucial time, with the Indian economy showing resilience and potential for sustained growth despite global economic uncertainties.

(KNN Bureau)