CEA pegs growth at 7-8.5% given global uncertainties

Chief Economic Adviser V Anantha Nageswaran on Wednesday said India’s growth is expected to be in the range of 7-8.5% given the global uncertainties. The International Monetary Fund recently lowered its growth forecast to 8.2% which is higher than 7.2% by the Reserve Bank.

“The range of outcomes is fairly wide. Wider than it could ever be and that makes decision making all the more hazardous. Lots of luck is needed to get it right,” he said at an event here.

As per the Economic Survey, India’s economy is expected to grow by 8-8.5% in the fiscal beginning April 1.

The CEA said he had a conversation this afternoon with Fitch Ratings which has projected 8.5% growth for India.

Although they have a negative outlook on India with BBB minus rating, they do have a forecast of 8.5% real GDP growth for 2022-23, he added.

“So, the reality may in fact somewhere between this range of 7-8.5%. We will take that in the current circumstances because the uncertainty as to how long this current conflict in Europe will last and the impact it would have… is quite difficult to guess at this point,” he said. (PTI)