He said capital investment in the country will be higher in this financial year which will help India grow at 0.5 to one percentage point higher than that projected by various ratings agencies.
In an interaction with industry players in Kochi on Monday, the CEA downplayed the impact of delayed monsoon, saying the economy has become less dependent on the monsoon and that even in case of a shortfall in rains, there is adequate food stock to ensure supply and keep down prices.
“We can achieve a steady 6.5% (growth) over the remainder of the decade with occasional opportunities for seven plus growth,” said Nageswaran. “In fact, this number can be higher if exports sector also performs, but that is going to be a challenge. That is why we are realistic in our expectations of what the economy can achieve.”
He said if exports continue to do well, it will be icing on the cake.
Despite slipping merchandise exports, service exports will remain a bright spot, he said. Nageswaran said the growth momentum in the fourth quarter of 2022-23 is continuing in the first quarter of this fiscal.
He said real GDP growth in the previous fiscal was 7.2%. but it will be much higher after final settlement of accounts.