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With an aim to help the economy revive better, Chief Economic Advisor V Anantha Nageswaran has said the private sector needs to invest more in technology and research and development (R&D), and pay the MSME suppliers on time. Stating that Indian economy cannot remain exempt from the global challenges he said but it remains resilient and is poised for a rebound as the banking system is better, inflationary issues are peaking out and ongoing recovery is healthy.

He said ‘It is to our credit so far that we have managed to keep the impact at more manageable levels so far. But it should require continuous vigilance, continuous action and discipline for policymakers.’ As several economies facing very high inflation, Nageswaran said India is in a relatively better position and the majority of its sectors are doing quite well despite market volatility and inflation. He emphasised the need to focus on R&D and innovation for long-term benefit. Urging the private sector to invest more, he said ‘on a global index, we are very low in R&D spend. Government spending is 52 per cent.’

He said the rebound in capital goods companies' order books is an indication that the investment cycle will pick up. Praising the government's efforts on several structural reforms, he said the real fruits of these reforms will be reaped from 2024 onward when the ongoing shocks will phase away. Lauding the role of the Reserve Bank of India in managing inflation by increasing interest rates, Nageswaran said he expects that the central bank will be able to bring inflation to 6.5 per cent.