India's Economy Expected to Grow 6.5-7% This Year, Says CEA.

UV INDIA NEWS : India's economic growth momentum remains strong, with the country expected to grow by 6.5-7% this year, supported by a favourable monsoon that is likely to boost agricultural growth and rural demand, along with increased private investment. Chief Economic Adviser V Anantha Nageswaran made these remarks, highlighting that India’s economy could grow at a sustainable rate of 7% in the medium term if ongoing structural reforms are maintained.

Nageswaran noted that despite a slower growth rate of 6.1% in the first quarter of the current fiscal year, the economy's underlying strength remains robust. He emphasised that India continues to have the fastest-growing major economy, aided by steady capital expenditure and improved balance sheets in the financial and corporate sectors.

Strong demand in passenger vehicles, airlines, and two-wheelers was cited as evidence of urban and rural consumption resilience. Nageswaran also acknowledged the need for caution regarding inflation expectations and the influence of geopolitical conflicts, which could impact global trade and commodity prices, posing challenges to India's growth trajectory.

He also mentioned that a stable macroeconomic environment and structural reforms would support sustained economic growth. Despite potential uncertainties like unpredictable weather patterns and rising inflation, the CEA expressed optimism that the economy would remain on a steady growth path due to sound fiscal policies and robust demand across critical sectors.