India’s economy has recovered from Covid and is poised to do better, says CEA

The recovery of the Indian economy from the Covid pandemic is complete and the country’s GDP growth is now poised for higher growth, Chief Economic Advisor V. Anantha Nageswaran said today at the press meet after tabling of the Economic Survey in Parliament.

The non-banking and corporate sectors now have healthy balance sheets, hence, we don’t have to speak of pandemic recovery any more, we have to look ahead to the next phase. GDP growth is poised to do better in the remainder of the decade,” he explained.

“The survey looks ahead to the medium-term because the pandemic response and recovery phase is over,” he said, adding that as long as oil prices remain below $100 per barrel, the projected growth rate would remain intact. He said it is difficult to predict the direction of oil prices.

The survey has pegged India’s growth rate for 2023-24 at 6-6.8 per cent while for the current financial year, it will be 7 per cent.

The CEA also said that the country’s overall economic growth will largely depend on digital investments. Digital investments will be a key growth driver in the coming years, he said.

“Reforms of the last eight years spanning multiple dimensions including digital, social and physical infrastructure were happening even as banking clean-up was going on,” Nageswaran noted.

Inflation should not be as much as a concern in the next financial year, he added.

The survey highlighted the importance of fiscal prudence which will benefit all sections of the society and keep interest rates low.

“As India’s economic recovery advances, amidst the continuing global uncertainties and risks, the fiscal glide path illuminates the path for fiscal policy. That will ensure more significant fiscal space for policy action in uncertain times,” the survey said.

Also read: Economic Survey pegs India’s GDP growth at 6 to 6.8% for 2023-24