New Delhi: Chief Economic Adviser (CEA) V. Ananth Nageswaran on Friday said that though the country’s GDP growth rate may have fallen to a 15-month low of 6.7 per cent in the April-June quarter of the current financial year, the Indian economy is expected to grow by 2024-25. It is on track to achieve a growth rate of 6.5-7 per cent. According to data released by the National Statistical Office (NSO), the GDP growth rate slowed to 6.7 per cent in the June quarter. The main reason for this is the slowdown in agricultural production, which declined from 3.7 per cent to two per cent in the April-June quarter of 2023-24.
Talking about the growth of the agriculture sector, he said very few monsoon subdivisions have received deficient rainfall and most of the subdivisions have received normal rainfall. Kharif sowing is higher than last year. “I think the growth rate of agriculture and allied sectors will pick up as we move into the financial year,” the CEA said. “Rural consumption has actually stabilised and improved, and a good monsoon will help in the coming year. Demand will get a fresh boost in the coming quarters.
“As far as the outlook is concerned, growth momentum remains strong,” he said. There were fears of a slowdown in the first quarter due to elections and reduced government spending… Monsoon has made good progress, balance sheets of companies and banks are in good shape. He said the Budget further boosts the continued good momentum, with a particular focus on employment, manufacturing, skills, agriculture, MSME sector and energy security in the medium term.
He said that in such a situation, the Indian economy can expect a growth rate of 6.5-7 per cent and if the structural reforms undertaken in the last decade are carried forward in the coming years, it can grow at a rate of over seven per cent on a sustained basis. He expressed confidence that the growth momentum remains strong and a growth rate of 6.5-7 per cent is very realistic for the current financial year.
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