Page 4 - Chief Economic Advisor

CEA Nageswaran bats for re-orientation of farm policies despite subsidies

Chief Economic Advisor V Anantha Nageswaran has called for a pan-India dialogue on the agriculture sector, highlighting the need for policy re-orientation despite existing subsidies and support measures. In the preface to the Economic Survey 2023-24, Nageswaran noted that while the government provides substantial support to farmers through subsidies on water, electricity, and fertilizers, along with income tax exemptions and minimum support prices, there is room for improvement in policy implementation. "A case can be made that they (farmers) can be served better with some re-orientation of existing and new policies," the CEA stated. The survey pointed out that current policies, implemented by both national and sub-national governments, often work at cross-purposes, leading to unintended consequences. These include soil fertility degradation, groundwater depletion, environmental pollution, and nutritional imbalances in crop production and dietary habits. Nageswaran emphasised the .

India grappling with 'unfavourable' factors in growth pursuit: CEA

As India tries to grow faster, the country needs to grapple with "unfavourable" factors like slowing globalisation, divisive world politics and the raging issue of climate change, Chief Economic Adviser V Anantha Nageswaran said on Friday. China, which grew at almost double digits between 1980 and 2015, did not have to contend with these factors during its high growth phase, Nageswaran said, addressing a Federation of Automobile Dealers Association (FADA) event here. "When India is now trying to grow, all these three factors have become unfavourable for India. Globalisation is slowing down, global politics is getting divided, and climate change is a raging topic," he said. Between 1980 and 2015, China was blessed with very strong globalisation, global politics not being as divisive and polarising, and the world not being as conflict-ridden, he said. Making it clear that India has "troubled relations" with China, the academic-turned-policymaker CEA asked the auto industry to reflect

Need to reconsider sachetisation of F&O trade to safeguard savings: CEA

Cautioning against household savings getting invested in futures and options trade, Chief Economic Advisor V Anantha Nageswaran on Saturday said there is a need to reconsider sachetisation of F&O trade because it requires different financial literacy. Speaking at the CII's Annual Business Summit, 2024, Nageswaran said whenever financial sector development precedes national development the story hasn't ended well for other countries as well. Asian crisis 1997-98 is a very important example, he said. When we take pride in the fact that we have the world's largest trading volume in futures and options (F&O), we need to ask ourselves is that a sign of progress or a sign of concern, the CEA said. He said the financial sector has a responsibility to ensure that capital market grows in those areas where we can actually harness Indian household savings for productive purposes. Many of the people currently engaged in the market do not understand them The sachetisation of futures and ...

Consumer price inflation likely slipped in April, food inflation sticky

V Anantha Nageswaran, the government's chief economic adviser, said on Wednesday the Indian economy was better placed than before to pursue 'non-inflationary' growth

'Omens good', India can grow 6.5-7% in the next decade: CEA Nageswaran

Inflation headed towards central bank's tolerance range; 'don't see scope for nasty upside surprises'

India expects FY25 growth of over 7%, says CEA V Anantha Nageswaran

The possibility of growth touching 8% in the last fiscal year that ended on March 31 is quite high, he added

Must decentralise power from states to local authorities: Ahluwalia

At Business Standard Manthan, Arvind Subramanian said that to reduce the gap, there needs to be a renegotiation of social contracts in agriculture and fiscal federalism

Sustaining rapid growth is challenging

India's goal of Viksit 2047 requires both luck and clearly outlined plans and policies

Economy may grow by over 7% for 4th year running in FY25: CEA Nageswaran

Sustaining high growth over long periods rare, country has seen only short bursts of high growth

Rating agencies need to review their framework, says CEA Nageswaran

Says global financial institutions tend to accentuate spillovers for developing economies

Risk of Oil price spike impacting India in Fy25 is low: CEA Nageswaran

An oil price surge of 10 per cent from the baseline of $85 per barrel could weaken domestic growth by 15 basis points and increase inflation by 30 basis points

Rating constraints

India's economic size and complexity offer advantages

Inequality a relative concept; absolute poverty India's urgent concern: CEA

The CEA notes that for a developing country such as India, where the growth potential is high and the scope for poverty reduction is also significant

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

Strengthening multilateral development banks for the 21st century

FinMin economic advisors question rating agencies' view on India's progress

Criticise "unilateral measures" by advanced economies to combat climate change

CEA V. Anantha Nageswaran urges India Inc to step up investments

The CEA further said that the drivers of economic growth have to rebalance between consumption and investment, as usually the consumption has to be a residual in the growth cycle

World Bank global indicators are subjective, says CEA V Nageswaran

As of 2022, India had a percentile rank of 63.2 in governance effectiveness, meaning it was equal to or better than 63.2 percent of countries

CEA highlights integral link between climate, development agendas

There is an integral link between climate and development agendas, Chief Economic Advisor Anantha Nageswaran said on Friday. Nageswaran made the statement while inaugurating a session of NITI Aayog's workshop on accessing multilateral development banks (MDBs) and global finance for development and green growth on Friday. "Issues surrounding the global challenge of leveraging private capital for social goals were discussed," NITI Aayog said in a statement. The deliberations focused on changing Multilateral Development Banks (MDBs) to work on broader programs instead of individual projects, the statement added. NITI Aayog Vice-Chairman Suman Bery chaired the second session on "Implications for a Strengthened and Bigger MDB System for India", which focused on the impacts of a stronger MDB system, especially with the goal of tripling lending volume by 2030. According to the statement, India's focus on becoming investable, especially in green hydrogen and ammonia, was highlighted. The

CEA V Ananatha Nageswaran sees RBI holding fire if US Fed hikes rate again

The Federal Reserve left interest rates unchanged on Wednesday while still keeping alive the possibility of more hikes given inflation remains above its 2 per cent target and economic growth is strong

Global warming a problem but can't sacrifice growth, says CEA Nageswaran

Says global economy was going through a period of uncertainty