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Chief Economic Advisor (CEA) to the government V Anantha Nageswaran has said that India is in a stable economic situation and the growth momentum is good despite the multiple crises taking place simultaneously and getting entangled with each other. He said that the world is passing through a 'polycrisis', which is multiple crises of high inflation, tightening of monetary policy, high interest rates, slowdown in China which affected global supply chain, and the Russia-Ukraine war.

CEA has stated that the challenges that the country is facing are unprecedented since World War II. But India is in a stable situation and the growth momentum is good. India will have a growth rate of 6.5 per cent to seven per cent in 2022-23, which is considered to be good despite a high inflation rate of 7.4 per cent. He also said that what India needs at the moment is to maintain macroeconomic stability, augment foreign exchange reserves and their judicious use, and finance the trade deficit due to high imports of crude oil.

Nageswaran further stated that financing the trade deficit is a challenge for the country caused by high crude imports. The flow of FDI is steady while portfolio investments have become volatile as the USD is becoming attractive due to high interest rates in the United States. He said that although India has become the fifth-largest economy in the world, the country's per capita income needs to increase. He also said there are signs of recovery of employment in the formal sector and there are indications that investments are picking up.