India to clock GDP growth of 6.5% in FY24: Ex-NITI Aayog vice-chief

New Delhi, October 2

The Indian economy will grow at around 6.5% in the current fiscal as the country’s macroeconomic situation is benefiting from the reforms that have been taken up in the past nine years by the Narendra Modi-led government, former NITI Aayog vice-chairman Rajiv Kumar said on Monday.

Kumar further said India needs and can grow at 8% plus as that level of economic growth is required to meet aspirations of the country’s young population and to generate sufficient jobs for its workforce.

“My growth projection (of India’s GDP growth in FY 2023-24) is 6.5%. “And I think we can easily maintain this (growth) over the next few years,” he said.

India’s GDP growth in 2022-23 was 7.2%, lower than 9.1% in 2021-22. According to Reserve Bank of India’s projections, India’s GDP is likely to grow at 6.5% in the current fiscal year.

Kumar further said, “Macroeconomic situation in India is benefiting from the reforms that have been implemented in the past nine years. Therefore, both the external macroeconomic balance as well as the domestic ones are in good shape.” He said India’s current account deficit is manageable, the country’s foreign exchange reserves are sufficient to cover about 11 months of imports and the foreign direct investment flows are continuing.

On the domestic side, Kumar said inflation is beginning to come down to the target levels and the government tax revenues have shown a good 16% increase over last year.

“So, this will take care of the fiscal situation and lead to fiscal consolidation. As a result of this improvement, the rating agencies have improved their ratings and JP Morgan has included India in its international bond indices,” he said. — PTI

RBI also projects 6.5% growth

• India’s gross domestic product (GDP) growth in 2022-23 was 7.2%, lower than 9.1% in 2021-22
• According to Reserve Bank of India’s projections, India’s GDP is likely to grow at 6.5% in the current fiscal year
• India’s foreign exchange reserves are sufficient to cover about 11 months of imports