Page 3 - Cea

India's Q3 GDP numbers are 'absolutely mystifying': Arvind Subramanian

Former chief economic adviser Arvind Subramanian on Friday said India's latest GDP numbers are 'absolutely mystifying' and difficult to comprehend. India's economy grew by better-than-expected 8.4 per cent in the final three months of 2023 - the fastest pace in one-and-half years. "I want to be honest with you that the latest GDP numbers, I just simply can not understand them. "I say that with genuine respect and things. They are absolutely mystifying. They don't add up. I don't know what they mean," Subramanian said while speaking at the India Today conclave. The NSO has also revised GDP estimates for the first and second quarters of this fiscal to 8.2 per cent and 8.1 per cent from 7.8 per cent and 7.6 per cent, respectively. Elaborating further, Subramanian said while the implied inflation in these numbers is 1 to 1.5 per cent, actual inflation in the economy is somewhere between 3 and 5 per cent. "The economy is growing at seven and a half per cent, even though private consum

FY24 GDP growth to be closer to 8% on higher activity in industry: CEA

India's real GDP growth in FY24 will be "closer" to 8 per cent on higher activity in industry and services verticals, Chief Economic Advisor V Anantha Nageswaran said on Tuesday. Addressing a conference organised by ARIA (Association of Registered Investment Advisors) virtually, Nageswaran said the growth will be higher than the Ministry of Statistics' estimate of 7.6 per cent, and added that there is much reason to be optimistic in the near term about the prospects in India. "...unless the Q4 GDP numbers fall very significantly from the momentum that we have seen in the first three quarters, the GDP will be closer to 8 per cent rather than 7.6 per cent as the Ministry of Statistics is currently estimating," Nageswaran said. However, he stressed on the need to put heads down and work towards the goal without "succumbing to triumphalism and exuberance". "As a country, we should realize that we are in it for the longer haul, not for the short term," he said, adding that the ...

Indian economy ticks many boxes in the right way, says CEA Nageswaran

He urges global rating agencies to reassess their estimates of India's potential growth rate to 7 per cent

Private capital yet to embrace energy transition, says CEA Nageswaran

While urging multilateral development banks to act on the recommendations of the independent expert group under India's Group of Twenty (G20) presidency to mobilise private capital, the CEA added

EU emissions tariff system must be fair to developing world: CEA

The Carbon Border Adjustment Mechanism (CBAM) aims to set a fair price on the carbon emitted during the production of energy-intensive products, like iron, steel, cement, and fertilizers, entering EU

We're on course to reaching inflation target of 4% in FY25: CEA Nageswaran

Our potential growth rate is somewhere between 6.5 and 6.8 per cent and it is not 6 per cent as the international agencies used to estimate, he says

India's exports resilient to global demand and exchange rates: CEA

According to the advisor, India's foreign trade has 'boomed' due to reforms that happened over the past few decades

CEA reiterates India's stand for more climate funds from developed nations

Citing studies by the United Nations agencies and independent studies, the report said that the developed world has fallen short on its climate action

Must maintain momentum on policy guidance in G20 Delhi declaration: CEA

Strengthening multilateral development banks for the 21st century

Private investment key to sustaining high economic growth rate: CEA

India's economic growth can become faster if the much-awaited private capital formation kicks into higher gear, Chief Economic Advisor V Anantha Nageswaran said on Friday. Nageswaran said that post-COVID financial balance sheets of corporates have been positive. "For economic growth we need to have investment spending ... India economic growth can become faster and accelerate if the much awaited private capital formation kicks into higher gear," he said while addressing an event organised by industry body FICCI. The CEA pointed out that in terms of instilling confidence in the private corporate sector, the government in 2019 reduced the corporate tax rate. Underscoring the significance of robust private investment in driving economic growth amidst global uncertainty and geopolitical shifts, Nageswaran urged the private sector to embrace uncertainty and proactively invest, saying, 'the more the private sector begins to put capital to work, the lesser will be the uncertainty." The .

Optimism should not cause premature triumphalism: CEA Nageswaran

India's growth engine can become faster and accelerate if the much-awaited private sector capital formation kicks into a higher gear, he said

Optimism should not cause premature triumphalism: CEA Nageswaran

India's growth engine can become faster and accelerate if the much-awaited private sector capital formation kicks into a higher gear, he said

India needs high economic growth to invest in energy transition: CEA

India requires high economic growth to invest in energy transition, Chief Economic Advisor (CEA) V Anantha Nageswaran on Wednesday said, observing that the country needs time to move away from coal to renewable energy. Addressing an event here, India is well ahead of other G20 countries in meeting the Nationally Determined Contributions (NDCs) target. "(India) needs high economic growth to invest in energy transition... We basically need the time to move away from coal towards other fossil fuels, and later on towards other renewable energy," he said. NDCs are national action plans adopted by various countries to limit the earth's average temperature rise to well below two degrees Celsius and preferably to 1.5 degrees Celsius compared to the pre-industrial (19850-1900) levels. "You will have to use coal for quite some time," he said. Nageswaran noted that the fear of carbon emissions is driving the West, particularly, Europe towards the impossible trinity of net zero, fiscal pruden

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

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

Startups will play important role to help India be 3rd largest economy: CEA

Startups will play an important role in helping India become the third largest economy in the world, Chief Economic Advisor (CEA) to the Union government V Anantha Nageswaran has said. Nageswaran said that tier-2 and 3 cities, including Kerala's capital, have become game-changers in helping startups flourish in the country due to improvements in infrastructure and supportive policies of the government, according to a KSUM release. The CEA, during his Leadership Talk on the concluding day of the Huddle Global 2023 organised by the Kerala Startup Mission (KSUM), said that India was the fifth largest economy on course to become the third largest in a few years. "In fact, I will say 7-in-7 is the buzz slogan, that is 7 trillion USD economy in seven years. Seven trillion USD economy size by 2030 is possible if India maintains its present growth trajectory, and in that journey startup entrepreneurs are going to play an important role," he is quoted as having said in the release. He was o

Developing economies' quota in IMF key to global financial stability: CEA

The increase of developing economies quota in the International Monetary Fund (IMF) can play a pivotal role in safeguarding global financial stability by enhancing the multilateral lending agency's permanent resources, Chief Economic Advisor V Anantha Nageswaran said on Wednesday. Participating in an event organised by the finance ministry, Nageswaran said the reforms of international financial institutions have to go beyond the World Bank and multilateral development banks (MDBs). "The executive board of the IMF has proposed to the Board of Governors that a 50 per cent quota increase (should be) allocated to members in proportion to their current quotas," he said. The 16th General Review of Quotas (GRQ) is likely to provide a greater say to developing economies in the International Monetary Fund. "This quota increase can play a pivotal role in safeguarding global financial stability by enhancing the IMF's permanent resources and reducing its reliance on borrowed resources," he ...

Climate action imposes heavy cost on developing nations, says CEA

Chief Economic Advisor V Anantha Nageswaran on Thursday said climate action, including energy transition, impose a heavy cost on developing nations. Observing that emerging countries are already grappling with twin challenges of poverty alleviation and economic growth, he said climate change and energy transition are an added burden. Energy transition must bear three costs, including rise in costs of production from rising fuel cost and higher costs of new energy sources as they replace traditional sources, he said at an event organised by Centre for Social and Economic Progress. He suggested that developing countries need to build the ship even as they are sailing. India has announced that it aims to reach net-zero emissions by 2070 and meet 50 per cent of its electricity requirements from renewable energy sources by 2030. Prime Minister Narendra Modi has announced more ambitious targets for 2030, including installing 500 gigawatts of renewable energy capacity, reducing the emiss

RBI may hold fire even if Fed hikes rates twice: CEA V Anantha Nageswaran

RBI Governor Shaktikanta Das recently said at the Business Standard's BFSI Insight Summit domestic factors determined India's monetary policy

Indian economy poised to grow at average 6.5% per annum over 2023-30: CEA

The Indian economy is poised to grow at an average of 6.5 per cent annually between 2023 and 2030, Chief Economic Advisor V Anantha Nageswaran said on Friday. Speaking at the BCC&I Indo-Pacific Economic Conclave, Nageswaran said the global economy is going to witness a period of uncertainty, and India has to plug into the global supply chain and make itself attractive for the China-plus one strategy. "We have had 9.1 per cent growth in FY22 and 7.2 per cent in FY23. We are poised to grow 6.5 per cent per annum on average for this year and the remainder of the decade. Why I am talking about 6.5 per cent and not 7.5-8 per cent? It is because we are not experiencing the kind of global growth that we experienced between 2003 and 2008," the CEA said. India has made progress in the last eight years as it has now become the fifth largest economy from the 10th rank globally in 2014, and within the end of this decade, it will become the third largest economy in the world, he ...

Inclusion of Indian bonds in JP Morgan index to widen investor base: CEA

The inclusion of G-Secs will be staggered over a 10-month period from June 28, 2024 to March 31, 2025, indicating one per cent increment on its index weight