Chief Economic Advisor said, GDP is estimated to be more than 7 percent in the current financial year

Indian Economy: Chief Economic Advisor (CEA) V Ananth Nageswaran said that the GDP (Gross Domestic Product) growth rate in the current financial year is likely to be more than 7 percent in view of the revised estimates of important figures. In the second advance estimate released by the National Statistics Office (NSO) on Tuesday, the growth rate is expected to be seven percent. The GDP growth rate was estimated to remain the same in the first advance estimate released in January.

V Ananth Nageswaran said, “Looking at the key indicators and the speed with which they are improving, I believe that the GDP growth rate in the current financial year will be up rather than down.” Real GDP growth rate ie GDP at constant prices (2011-12) is estimated to be Rs 159.71 lakh crore in 2022-23 as against Rs 149.26 lakh crore in the first revised estimate of 2021-22. According to the NSO, the GDP growth rate at constant prices is estimated to be seven per cent in 2022-23 from 9.1 per cent in 2021-22.

According to the NSO data, the growth rate slowed down to 4.4 per cent in the third quarter of the current financial year mainly due to weak performance of the manufacturing sector. The National Statistics Office on Tuesday revised the GDP growth rate data for the last three years 2019-20, 2020-21 and 2021-22 and also released the second advance estimate for 2022-23.

V Ananth Nageswaran said that the increase in the interest rate cannot be the reason for the low economic growth rate. This actually reflects the fact of good demand for loans. He said that the real interest rate is not very high at this time. In some areas, the earlier suppressed demand is now coming to the fore.

On rural inflation being high, Nageswaran said it did not take into account the fact that a large section of the population was getting essential food items without any amount. Regarding the economic benefits of digitization, he said that the scope of organized sector has increased due to increase in digital transactions. The Chief Economic Advisor said, I estimate that it is contributing 0.3 percent to 0.5 percent every year to the provisional GDP. So far no one has adequately estimated the contribution of digital infrastructure to economic growth. It needs to be assessed.

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