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Business News/ Economy / India to achieve 6.5% growth comfortably in FY24: CEA
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India to achieve 6.5% growth comfortably in FY24: CEA

The CEA said, adding that the economy has maintained momentum after its recovery from the pandemic.

Chief Economic Adviser V. Anantha Nageswaran. (Photo: Reuters)Premium
Chief Economic Adviser V. Anantha Nageswaran. (Photo: Reuters)

New Delhi: With the economy growing at 7.6% in real terms in the September quarter, India is now set to achieve 6.5% growth comfortably in the current fiscal, chief economic adviser Anantha Nageswaran said on Thursday.

"We are more comfortable with 6.5% growth forecast for FY24 now," Nageswaran said at a briefing after the second quarter GDP figures were released by the statistics ministry today. The second quarter growth of 7.6% is more optimistic than private forecasts, the CEA said, adding that the economy has maintained momentum after its recovery from the pandemic.

India's real GDP growth in the September quarter was higher than that of many other countries during their third quarter, Nageswaran said, highlighting the faster annual growth in the manufacturing sector in the September quarter.

"By and large, rural demand is steady even if it is not spectacular... Private sector capital is not an aircraft waiting to take off, but an aircraft already in flight," Nageswaran said.

The chief economic advisor also pointed out that the tax buoyancy of the current financial year including both direct and indirect taxes is 16.3%, compared to nominal GDP growth of 8.6%, translating to a tax buoyancy of 1.9%. 

The tax buoyancy for this financial year, including both direct and indirect taxes, is 16.3%, which is 1.9 times the nominal GDP growth rate of 8.6%.

The government's fiscal management is on track, Nageswaran said. The Centre is likely to look at the possibility of an upward revision in the full-year growth prospects in light of the 7.6% second-quarter growth.

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ABOUT THE AUTHOR
Gireesh Chandra Prasad
Gireesh has over 22 years of experience in business journalism covering diverse aspects of the economy, including finance, taxation, energy, aviation, corporate and bankruptcy laws, accounting and auditing.
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Published: 30 Nov 2023, 08:44 PM IST
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