NEW DELHI: The country will achieve 6.5-7% growth for the current financial year, said V Anantha Nageswaran, chief economic advisor, Government of India.
Nageswaran, speaking at the Global Economic Policy Forum 2024, organised by the Confederation of Indian Industry (CII), highlighted the uncertain global economic environment as an ongoing challenge for India. He emphasised the need for India to strengthen domestic efforts to navigate these global uncertainties.
This statement assumes significance as the Reserve Bank recently lowered the growth projection for the current fiscal year to 6.6% from 7.2% earlier and increased the inflation forecast to 4.8% due to a slowdown in economic activity and stubborn food prices.
At the same event, Sunil Barthwal, secretary of the Department of Commerce in the Ministry of Commerce and Industry, said India is one of the most open economies globally, with trade contributing 45.8% of the country’s GDP.
Barthwal pointed out the growing significance of the services sector, which accounts for 43.8% of India’s total exports, well above the global average of 24.7%. With the services sector expanding at a rate of over 7% annually, it is expected to outpace merchandise exports in the future, potentially accounting for more than 50% of India’s total trade.
Dr. Arvind Panagariya, Chairman of the 16th Finance Commission of India, speaking at the forum, emphasised on the opportunities for India in the global marketplace. During the session on “Integrating Industrial, Investment, and Trade Policies: A New Paradigm for India,” he noted that while the global trend toward protectionism and automation might lead to the reshoring of manufacturing, export opportunities will still remain.