The economy is going to see "good capital formation for good credit growth", he said.
The economic survey released before the annual budget in January this year has estimated FY23 growth to come at 8-8.5 per cent.
The RBI raised the overseas borrowing limits for companies and liberalised norms for foreign investments in government bonds as it announced a slew of measures to boost foreign exchange inflows.
In 2019, Prime Minister Narendra Modi envisioned making India a USD 5 trillion economy and global powerhouse by 2024-25.
The original target year was 2023-24, the former finance minister said, adding that, "We are nowhere near that goalpost."
He said that all major activities and parameters of the economy have crossed their pre-COVID levels, and it is now enjoying macroeconomic tailwinds.
India's growth to enhance once cloud of COVID, geopolitical conflict recedes: Chief Economic Advisor
The CEA said India is right now in a situation where the economy faces considerable amount of challenges both from global macro monetary policies and political developments.
He did not specifically mention the war on Ukraine, or its impact on oil prices which touched a 14-year-high of over USD 140 per barrel. It can be noted that India imports 85% of its crude.
Nageswaran also said that there needs to be a long-term vision for the economy and that past thinking processes will take time to be discarded