Rajiv Kumar, former vice president of Niti Aayog. | Photo credit: PTI
India is expected to register a growth rate of 6% in the next financial year and the country can persevere with a high growth rate thanks to several reforms undertaken in the last eight years by the Narendra Modi government, the former deputy has said. – Chairman of Niti Aayog, Rajiv Kumar, on February 19.
Mr. Kumar further said that major risks ahead would stem from a synchronized slowdown in the North American and European economies.
“India has a good opportunity to persevere with a high growth rate thanks to the reforms undertaken over the past eight years. We will manage to grow at 6% in 2023-24,” he said. PTI in an interview.
According to Kumar, there are several downside risks, especially against the backdrop of an uncertain global situation.
“These will need to be addressed through prudent policy measures designed to support our export efforts and at the same time improve the flow of private investment from both domestic and foreign sources,” he said.
The Reserve Bank has projected economic growth of 6.4% for 2023-24, which is broadly in line with the estimate in the economic study tabled in Parliament.
Gross domestic product (GDP) growth is estimated at 7% in 2022-23, according to the first advance estimate from the Office for National Statistics (ONS).
The 2022-23 economic study projected a baseline GDP growth of 6.5% in real terms for the next fiscal year.
Responding to a question on high inflation, Mr. Kumar said the Reserve Bank has said that it will ensure that the inflation rate is kept under control.
“Additionally, a good winter harvest will help keep food prices low,” he noted.
The RBI has lowered the consumer price inflation (CPI) forecast to 6.5% for the current financial year from 6.7%.
Retail price inflation in India in January was 6.52%.
Asked about India’s growing trade deficit with China, Mr Kumar suggested that New Delhi should reconnect with Beijing to find greater market opportunities and access to the Chinese market.
“There are several products that India can export more to China.
“It will take thoughtful re-engagement,” he stressed.
According to Mr. Kumar, it would be possible for India to restrict imports from China because most of the imported products are very essential imports.
Indian and Chinese troops clashed along the Line of Actual Control (LAC) in Tawang sector of Arunachal Pradesh on December 9, 2022 and the confrontation resulted in ‘minor injuries to a few personnel from both sides .
According to recent data released by China Customs, trade between India and China hit an all-time high of $135.98 billion in 2022, while New Delhi’s trade deficit with Beijing crossed for the first time. the $100 billion mark despite icy bilateral relations.
Responding to a question on the Adani crisis, Mr Kumar said that a strong public-private partnership is essential to develop infrastructure at the required pace.
“I don’t think such an incident with a private family business will hinder this effort.
“…There are a large number of private sector companies that have been involved in infrastructure development in the past and will continue to do so in the future,” he observed.
The Adani Group has come under heavy pressure since U.S. short seller Hindenburg Research accused it on January 24 of accounting fraud and stock manipulation, allegations the conglomerate has denied as “malicious”, “baseless” and a “calculated attack on India”. .
As the group’s listed companies have lost more than $125 billion in market value in three weeks, opposition parties inside and outside parliament have attacked the BJP government for the conglomerate’s meteoric rise ports to energy. Shares of most companies in the group have rallied over the past two days.