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  5. Q2 GDP may be revised upwards, deregulation to be big theme of Economic Survey 2024-25: CEA Nageswaran

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Q2 GDP may be revised upwards, deregulation to be big theme of Economic Survey 2024-25: CEA Nageswaran

Upstox
By Upstox News Desk

3 min read | Updated on December 05, 2024, 16:54 IST

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SUMMARY

India's Chief Economic Advisor, V Anantha Nageswaran, remains optimistic about achieving a 6.5-7% GDP growth in FY24 despite a Q2 slowdown.

Chief Economic Advisor V Anantha Nageswaran

Chief Economic Advisor V Anantha Nageswaran was speaking at the Assocham Bharat@100 summit.

Despite a slowdown in the second quarter, Chief Economic Advisor (CEA) V Anantha Nageswaran on Thursday said India achieving a GDP growth of 6.5-7% in the current fiscal is feasible.

Addressing an Assocham event, Nageswaran said economic activity in some sectors have picked up pace during October-November and GDP growth of 5.4% for the July-September quarter, which marked a seven-quarter low, could be revised upwards as the current estimates are not seasonally adjusted.

"I think in reacting to these numbers, I don’t think we should throw the baby out with the bathwater. Because the underlying growth story still remains very much intact," Nageswaran said.

Also Read | Govt revises release time of India's GDP estimates. Here's why

Nageswaran said the slowdown could be because of "religious observances" in September and excess monsoon rainfall, while suggesting that some long-standing structural issues may also be at play.

"To be able to hit 6.5 per cent growth for the year as a whole, we need a 7 per cent real GDP growth in the next two quarters of which two months are already over in the third quarter. We are in the third month.

"I think that it is doable if you look at some of these pickups that have happened in specific areas. So I believe that a growth outcome in the range of 6.5-7 per cent is feasible for the year," Nageswaran said.

The RBI had forecast GDP growth at 7.2% for FY24, slightly above the finance ministry's Economic Survey projection of 6.5-7%. India’s economy grew 8.2 per cent in FY23.

The CEA also indicated that deregulation will be a big theme of the Economic Survey 2024-25, set to be tabled in Parliament on January 31.

"We touched upon it quite a bit in the economic survey in July and that is going to be the big theme. Deregulation or letting go is the big theme for the coming economic survey as well," Nageswaran said.

To bridge the gender divide as well as push job creation, policy can do more in terms of deregulation.

He pointed out that 118 occupations remain restricted for women across various states due to safety concerns, which hampers their participation in the workforce.

"If you want to increase female workforce participation then the focus has to be on the plumbing of deregulation has to happen in state and local governance," he said at the Assocham Bharat@100 summit.

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