Chief Economic Advisor V. Anantha Nageswaran said on Monday that India is expected to record better growth than IMF projections next year, helped by increased capital formation.

Recently, the International Monetary Fund (IMF) predicted real growth of 6.8% for this year and 6.1% for next year for India.

“I think actually the growth rates for the coming years might be slightly higher, slightly better than those numbers because I think it’s possible that India’s capital formation cycle will improve. after a decade of decline,” he said. .

India’s public digital infrastructure is likely to have passed an inflection point and this will also contribute to both formalization of the economy and hence higher growth, he said.

So, he said, there could be a 0.5-0.8% addition to the 6% benchmark.

He also said that fiscal policy and monetary policy are generally synchronized and counterbalance each other.

Regarding the high debt-to-GDP ratio, he said, sustainability is not a concern and it could decrease with the monetization of assets.

India can use the proceeds from asset monetization to reduce its debt and this will help improve the credit rating, which may be the best fiscal stimulus we can provide, he added.