– Chief Economic Advisor V Anantha Nageswaran believes that a real GDP growth projection of 6.5 to 7 percent for FY25 is more realistic
– Nageswaran attributed the government’s cautious approach to factors such as patchy monsoon distribution, rising geopolitical tensions, and financial market risks
– He highlighted concerns about inflation in specific commodities but stated that overall inflation is well-behaved
– The CEA expressed concerns about rising retail participation in speculative trading in the stock market, stating it could impact capital formation
– He emphasized the need for bottom-up reforms and strengthening governance for sustainable growth
– Nageswaran highlighted the importance of boosting female labor force participation and supporting MSMEs and agriculture for growth
– The CEA expressed confidence in the Indian economy’s ability to generate jobs, citing improvements in employment indicators
– Nageswaran called for a debate on the current inflation targeting framework and highlighted the need for structural reforms.