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Chief Economic Advisor V Anantha Nageswaran has said high frequency data indicate buoyant economic growth momentum and the 7 per cent GDP growth estimate for the current fiscal is very realistic. He also said that there are enough signs that manufacturing is in good health. According to him, the GDP growth forecast of 6.5 per cent for the next fiscal is well within the range of forecast by other agencies like OECD and ADB but there are downside risks.

He stated ‘Inflation is softening and the pass through from wholesale prices has run its course… we do have some uncertainty related to monsoon because of El Nino activity… we need to be ready with both supply side and monetary policy measures in the course of the next financial year.’ Further, he said ‘We need to be prepared for tighter financial conditions globally, weather-related uncertainties and geopolitical factors. 2023-24 may not see a big ticker shock as we saw in early months of 2022-23 as the war broke out in 2022 but nonetheless some of the underlying factors are still simmering and we need to be watchful.’

Besides, he said sales of passenger vehicles, two-wheelers and tractors are on an uptrend and real estate sector too is bouncing back strongly. Unemployment rate is coming down and jobs are being created at lower salary level. Moreover, he added said all these indicators point towards broad-based growth momentum in the economy.