India likely to clock better growth than IMF`s projections next year: Chief Economic Adviser V. Anantha Nageswaran
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Expressing optimism over India’s economic situation, Chief Economic Adviser (CEA) V. Anantha Nageswaran has said that the country is likely to clock better growth than International Monetary Fund’s (IMF) projections next year supported by enhanced capital formation. Recently, the IMF projected 6.8% real growth for this year and 6.1% for next year for India.
He said ‘I think in fact, the growth rates for the coming years may be slightly more, slightly better than what these numbers are, because I think there is a possibility that India's capital formation cycle will do better after one decade of retrenchment’. He also said India's public digital infrastructure has probably crossed an inflection point and that will also be contributing to both formalisation of the economy and therefore higher growth.
He further said so, maybe there could be 0.5-0.8% addition to the 6% baseline numbers. He also said that fiscal policy and monetary policy are usually synchronised and counterbalance each other. On high debt-to-GDP ratio, he said sustainability is not a concern and it may reduce with asset monetisation. He added that India can use asset monetisation proceeds to whittle down it's debt and that will help improve the credit rating, that can be the best fiscal stimulus we can provide.
