Growth prospects bright, pvt capex takes off: CEA

Private sector capital formation, supported by the government's capex push, has already taken off with investment intentions coming back in a big way, Chief Economic Advisor (CEA), V Anantha Nageswaran, said on Thursday. "India's real GDP growth towers above many other countries' estimates. 

- RUCHIKA CHITRAVANSHI

ALLAYING CONCERNS

These numbers are on a slow and steady upward trend. A slowdown in the global economy and trade may moderate export growth, but overall, it may be better for us," Nageswaran told reporters.

He reiterated that the government is comfortable with the GDP forecast of 6.5 per cent for FY24 as risks to the forecast were evenly balanced.

The CEA was speaking at a virtual briefing on the state of the economy as India's real gross domestic product (GDP) grew by 7.8 per cent for Q1FY24.

Stressing that prolonged geo-political uncertainty and likely tighter financial conditions also pose a challenge to the future growth outlook, the CEA also said that while food inflation is likely to subside, the impact of deficient monsoon in August has to be watched.

"Growth prospects appear bright, though external factors pose a downside risk," the CEA said.