GDP Growth May Top 7% This Fiscal Year, Says CEA

According to the second advance estimate released by the National Statistical Office (NSO) maintained the growth projection of 7% as was projected in the first advance estimate which was released in January

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Chief Economic Advisor V Anantha Nageswaran has said that the GDP growth for the current financial year will exceed the projected 7% in view of the expected revision of high frequency data, according to a PTI report.

"Given the high frequency indicators and the pace at which they are recovering, I do believe that the current year's GDP numbers are more likely to be revised upward than downward," said CEA in a statement.

The second advance estimate released by the National Statistical Office (NSO) maintained the growth projection of 7% as was projected in the first advance estimate which was released in January. The data further revealed that real GDP or GDP at constant (2011-12) prices in the year 2022-23 is estimated at INR 159.71 lakh crore as against the first revised estimate of GDP for the year 2021-22 of INR 149.26 lakh crore.

The growth slowed to 4.4 per cent in the October-December quarter, mainly due to a contraction in the manufacturing sector, as per the data released by the NSO

"The rising interest rates need not necessarily be a cause of lower growth but simply reflects the fact that there is healthy underlying demand for credit. Real interest rate is not very high at the moment," said CEA while adding there is pent up demand in certain sectors.

Being asked on the economic benefit of digitisation, he said that digital transactions enable increase in formalisation. According to him, as per the news report, "My guesswork is that it is adding between 30 and 50 basis points per annum to the provisional GDP. Nobody has yet done the proper estimation of what the digital infrastructure is adding to the overall potential economic growth and that needs to be worked out."

The Reserve Bank of India, on Friday in its monthly bulletin, has said that India can achieve a growth of 7% in its real gross domestic product (GDP) in the next financial year, aided by the measures taken by the Centre in the Union Budget. The projection is reportedly higher than the 6.4% GDP growth estimated by the RBI in its monetary policy on February 8.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.

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