Despite the challenges, how is India’s economy performing tremendous performance? Chief Economic Advisor gave the reason

India gdp growth rate: The country’s Chief Economic Advisor V. Anantha Nageshwaran said that despite the upheaval in the last four years, India not only kept the energy prices stable but also kept them low. He says that these low energy prices are a major basis for the strength of the country’s economic growth. He said that for this reason, during the last four-five years, the Indian economy has performed more than expected.

Why is Indian economy strong?

In an AIMA program, he said that there has been a significant structural improvement in the country. This is to maintain financial discipline and fiscal stability despite Covid epidemic and regional security challenges. However, it has not been highly appreciated.

He said that the Government of India had promised that the financial deficit would be reduced from 9.2 percent to half in five years, and the government completed it. Recently, Union Finance Minister Nirmala Sitharaman has also said that in the current financial year we will achieve the target of financial deficit of 4.4%.

Ahead

Nagswaran said that the biggest thing is that we keep following the path of financial stability and discipline. This keeps Macroeconomic Stability, and this gives the basic strength to increase economic activities in the coming years.

On the other hand, Fitch Ratings has increased the estimate of India’s GDP (GDP) growth for the current financial year by 6.9 percent due to a strong growth of the June quarter and domestic demand. Earlier, Fitch had estimated the Indian economy to grow at a rate of 6.5 percent.

In its September global economic scenario (GEO), the rating agency said that there has been a rapid increase in economic activities between March and June quarters of the current financial year, and the actual GDP growth rate has increased from 7.4 percent of January-March to 7.8 percent on an annual basis. This is much higher than the forecast of 6.7 percent in our June, GEO.

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