In a recent interview, V. Anantha Nageswaran, the Chief Economic Advisor to the government, has shed light on the government’s vigilance in monitoring the quantifiable implications of the monsoon shortfall. Of particular concern is the potential impact on rural consumption and demand, vital components of the nation’s economic landscape.
Nageswaran emphasized that the government has implemented several supply-side measures aimed at curbing inflation. These measures, he believes, are poised to yield success in the medium to long term. In these challenging times, the government remains committed to ensuring the stability of the nation’s economy.
Economic Growth Projections
When questioned about the outlook for economic growth in the upcoming quarter, Nageswaran refrained from providing specific quarterly forecasts. He referenced the Reserve Bank of India’s estimate of 6.5% for the year. While the precise methodology behind this estimate is of lesser significance, he noted that the government aligns with this assessment. Therefore, the nation is currently on track for a 6.5% real GDP growth rate for the fiscal year 2024. Nageswaran also added that the government views the risks associated with this projection as being balanced, with no immediate concerns of significant deviations.
As the nation navigates various economic challenges, the government remains steadfast in its commitment to economic stability and growth. It is closely monitoring the impact of factors such as monsoon fluctuations on rural areas and maintaining a vigilant stance on inflation.