Q2 numbers an upside for FY24 GDP estimate: CEA V Anantha Nageswaran

The Centre sees better-than-expected 7.6 per cent growth in the July-September quarter as an upside for its full-year estimate of economic growth in the country.

India’s Chief Economic Advisor (CEA) V Anantha Nageswaran said on Thursday that the government is much more confident of achieving a 6.5 per cent growth in the current financial year (2023-24).

“We will have to work the numbers to see what kind of upside the current numbers impart for the full-year estimate, and until then, we will keep the estimate at 6.5 per cent,” Nageswaran said in a press briefing.

A decision on the revision of the full-year gross domestic product (GDP) estimate may only be considered after a thorough process of number-crunching.

The GDP numbers released on Thursday evening surpassed private estimates by a wide margin as manufacturing and construction activities expanded in double digits.

Addressing concerns over rural demand, Nageswaran said that it is “steady, if not spectacular”, adding that rural consumers have performed better than urban ones.

Referring to debt raised by private companies for capital expenditure, the CEA said, “Private sector capital is not an aircraft waiting to take off, but an aircraft already in flight.”

On the downside risks, uncertainty over merchandise trade continues to be a matter of concern for the Centre. The CEA added that crude oil prices would also require vigilance.

According to Nageswaran, geopolitical uncertainties and the monetary tightening stemming from it are also likely to pose a challenge.