V. Ananth Nageswaran, Chief Economic Advisor to the Government of India, in Chennai on Thursday. , Photo credits: R. Ragu
India’s inflation rate is expected to ease in 2023-24, Chief Economic Advisor V. Ananth Nageswaran said on Thursday, but added that monsoon-related issues would be a major risk. He said El Nino conditions could have an impact on the monsoon, which would have implications for food prices, inflation and economic growth.
‘Have Global Headwinds Delayed India from Reaching $5 Trillion Economy?’ organized by Chennai International Center at Sri Nageswaran Ethiraj College for Women? Speaking on the subject. He pointed out that there was global uncertainty due to high inflation and high interest rates, leading to tight financial conditions. In 2022, developed economies see a high inflation rate of 8-9% compared to their average of 2%, while India sees an inflation rate of 7%. He said that the economic slowdown in America can have positive effects.
A slowing economy will prevent interest rates from rising in the US, which will result in the Reserve Bank of India stopping its rate hikes. He said that taking into account the currency fluctuations, India would become a $3.4 trillion economy in 2022-23 and could become a $5 trillion economy by 2025-26 or 2026-27 and up to $7 trillion by 2030. could reach. One of the key things to watch this year was the recovery in China, which will have an impact on commodity and oil prices.
Asked whether India’s economy is going back to the ‘Hindu’ rate of growth, he asserted that India’s growth is not stagnating.