India's economy grew by 4.1 per cent in the fourth quarter of 2021-2022, pushing up the annual growth rate to 8.7 per cent. With this, the Centre is also expecting improved investment and increased rural demand to revive in coming months on forecast of good monsoon, Chief Economic Advisor, Dr V Anantha Nageswaran shared in a virtual media briefing on Tuesday evening.
Despite the sequential decline in Q4 growth, and inflation pressure, it is unlikely that India could witness a recession in fiscal year 2023. "Recession differs for development and developing countries. However, can take a bet against recession as far as India is considered" shared Nageswaran.
the CEA also added that growth inflation challenges are universal. Despite that, India is in a much better place in terms of inflation as compared to other countries, he said.
He said that Q4 GDP at 4.1 per cent has turned out to be better than estimated.
"We are expecting that fiscal year 2023 GDP should hold around 7 per cent. We must also consider global impacts; China supply chain bottlenecks will have an impact on June-July data." said Nageswaran.
Talking to Business Today Television about changes in fiscal policy due to rising crude prices, he said, "Let's not forget that relief is coming to common man, households not only through excise cut by government but also through other mechanism like free food grain programme extended until September. Policy changes for all countries including India will be managing this. Difficult to spell out in advance what steps government will further take." he said.
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