Global agencies will reassess GDP estimates about India: Chief Economic Advisor Nageswaran

New Delhi [India], February 29 : India continues to be an outlier and remains the fastest-growing major economy and global agencies will reappraise their estimate of potential GDP growth in India, which is close to 7 per cent, if not higher, Chief Economic Advisor V Anantha Nageswaran has said.
In a virtual media briefing after third quarter GDP growth figures were released, Nageswaran said that India stands out as the fastest-growing economy, supported by stable external sectors, current account deficit nearing just 1 per cent of GDP, forex reserves covering 11 months of imports and substantial FPI flows contribute to economic resilience.
According to the data released by the government on Thursday, India's economic growth has scaled up to 8.4 per cent in the third quarter of 2023-24. The National Statistics Office has given India's GDP growth estimates for this year to 7.6 per cent from 7.3 per cent estimated in early January, even as it scaled down its 7.2 per cent growth estimate for 2022-23 to 7 percent.
Nageswaran said that in the services sector, while hospitality growth has slightly dipped, it's seen as stabilising after a strong recovery in FY22 and FY23.
Tourist arrivals surpass pre-pandemic averages, signalling a positive trend in both business and leisure travel, he said.
The CEA said that demand conditions are favourable, reflected in healthy passenger vehicle sales, domestic air passenger traffic, and a buoyant construction sector. With the external sector remaining stable, the country seems well-positioned for continued growth.
"Looking ahead to FY25, prospects are optimistic. Anticipated factors include a robust Rabi harvest, sustained manufacturing profitability and service sector resilience. Household consumption is expected to improve, supported by positive private capex cycles, improved business sentiments, and the government's focus on capital expenditure," he added.
The CEA highlighted that global factors, such as an improved outlook for international trade and integration into global supply chains, further bolster India's economic potential. Public digital platforms and strategic initiatives like PM GatiShakti and production-linked incentive schemes aim to stimulate manufacturing.
The CEA also referred to challenges with uncertainties in merchandise trade and geopolitical tensions potentially impacting growth.
"Despite these challenges, India's economic outlook for FY25 appears promising, with a combination of internal strengths and external factors poised to drive continued growth," he said.
The Indian economy grew 7.8 per cent and 7.6 per cent during the preceding two quarters - April-June and July-September, data released by the Ministry of Statistics and Programme Implementation on Thursday showed.
Real GDP or GDP at Constant (2011-12) Prices in the year 2023-24 is estimated to attain a level of Rs 172.90 lakh crore, against the FRE (first revised estimates)of GDP for the year 2022-23 of Rs 160.71 lakh crore.
The growth rate of GDP during 2023-24 has been estimated at 7.6 per cent as compared to growth rate of 7 per cent in 2022-23.Nominal GDP or GDP at Current Prices in the year 2023-24 is estimated to attain a level of Rs 293.90 lakh crore, against Rs 269.50 lakh crore in 2022-23, showing a growth rate of 9.1 per cent.
India's economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22, respectively.
The National Statistical Office on Thursday released the Second Advance Estimates (SAE) of National Income, 2023-24; Quarterly Estimates of Gross Domestic Product (GDP) for October-December quarter (Q3) of 2023-24 along with its expenditure components.