Industry, services to take GDP growth to 8% in FY24: CEA

MUMBAI: India’s real GDP growth in FY24 will be “closer” to 8 per cent on higher activity in industry and services verticals, Chief Economic Advisor V Anantha Nageswaran said on Tuesday.

Addressing a conference organised by ARIA (Association of Registered Investment Advisors) virtually, Nageswaran said the growth will be higher than the Ministry of Statistics’ estimate of 7.6 per cent, and added that there is much reason to be optimistic in the near term about the prospects in India.

“...unless the Q4 GDP numbers fall very significantly from the momentum that we have seen in the first three quarters, the GDP will be closer to 8 per cent rather than 7.6 per cent as the Ministry of Statistics is currently estimating,” Nageswaran said.

However, he stressed on the need to put heads down and work towards the goal without “succumbing to triumphalism and exuberance”.

“As a country, we should realise that we are in it for the longer haul, not for the short term,” he said, adding that the gratification will be delayed and not instant.

Industry and services are seen pulling growth for FY24, while agriculture will be behind because of the delayed and erratic monsoons which impacted the summer crop, he said, adding the high sowing of the winter crop, waning of El Nino and expectations of a normal monsoon bode well for the farm sector going ahead.

Exports will not be the biggest growth driver going ahead unlike the first decade of this century, he said, pointing out to sluggishness in global growth.