India to grow at avg rate of 6.5% between 2023-30

The Chief Economic Advisor stated that India had witnessed a growth of 9.1 percent in FY22 and 7.2 percent in FY23, a news agency report said.

Speaking at an event in Kolkata, he mentioned that the economy is projected to achieve an average annual growth rate of 6.5 percent for the current year and the subsequent years until the end of the decade.

He explained that this projection was based on the fact that the global economy is not growing at the same level it was in 2003 to 2008.

Over the past eight years, India has advanced significantly, moving up from the 10th position globally in 2014 to now hold the fifth spot in the world economy, he asserted, adding that by end of this decade, India is poised to rise to the position of the third largest economy on the global stage.

The global economy is entering a phase of unpredictability. Factors such as geopolitical divisions, economic inefficiencies driven by geopolitical concerns, and a reversal of globalisation are currently in motion, he said.

In contrast, between 2003 and 2008, globalization was at its peak. Interest rates were either low or on a downward trend worldwide. Now, we are either witnessing a rise in interest rates or they are expected to stay elevated. We hold a realistic outlook on our growth prospects. Despite this, India is poised to maintain one of the world's highest growth rates, at 6.5 percent in real terms and 11 percent in nominal terms, stated the economist.

He also underscored the significance of augmenting the proportion of manufacturing in Gross Domestic Product (GDP) and India's role in worldwide manufacturing.

"We must construct robust value chains that can withstand international pressures... It's imperative that we integrate into the global supply chain and position ourselves as an appealing option for the China-plus one strategy. India stands to benefit from geopolitical shifts, and we must seize this opportunity promptly and energetically. Additionally, we must ensure the development of infrastructure for seamless last-mile connectivity," Nageswaran stated.