India Must Prepare for Growth Opportunities to Meet 2047 Development Goal

New Delhi: India must take advantage of conducive global situations to accelerate its growth pace in order to achieve the ambitious goal of becoming a developed nation by 2047, said Chief Economic Adviser V Anantha Nageswaran on Friday.

Nageswaran attributed the current slowdown in India's economic growth to global factors. Citing data from the Economic Survey, he stated that India requires a growth rate of 8% for up to two decades to meet its aspirations. According to the survey, India's economic growth is expected to slow down to 6.4% in 2024-25.

However, Nageswaran noted that whenever global exports growth picks up, it contributes an additional 0.5 to 1% to India's GDP. He believed that as long as this trend continues, India's economy can recover and potentially reach a growth rate of 7.5-8%.

The CEA also emphasized the importance of considering Viksit Bharat's growth rate in relation to the nominal GDP growth rate in dollar terms. According to him, this growth rate is around 10% and while it may not be achievable every year, there will be years with more than that and years with less.

Nageswaran appealed to policymakers to be prepared to take advantage of favorable global conditions and maintain a minimum level of economic growth during unfavorable times. He also commended the Reserve Bank of India's steps taken to manage the sliding Indian rupee and domestic liquidity.

The CEA addressed concerns over the slowdown in net foreign direct investment (FDI) by stating that India was now competing with industrialized nations, not just emerging markets. He noted that the government has been responding to emerging situations, which may impact FDI numbers.

Additionally, Nageswaran expressed his confidence that crude oil prices will remain stable.