India can maintain growth at over 6.5-7% for a decade: CEA Nageswaran

The economy of the nation could maintain growth at a rate of over 6.5 per cent to 7 per cent for a decade, Chief Economic Advisor of India V. Anantha Nageswaran said in New Delhi on Wednesday. Nageswaran was of the opinion that the target could be achieved with the aid of investment within the scope of physical as well as the digital infrastructure.

Nageswaran was speaking at an event that the National Council of Applied Economic Research held in the Capital city. He felt that growth numbers could exceed beyond 7 per cent in the ongoing fiscal year, in sync with the positive surge in economy.

India’s Chief Economic Advisor, or CEA, noted that there was “quite high” a chance that growth rate of the country surpassed the eight-per cent mark in the financial year that ended in March, adding that “the omens are good for us to continue the steady growth rate” that would enable India to sustain momentum over the next 10 years.

According to Nageswaran, there could be further acceleration in growth if the country concentrated on lowering the compliance burden for businesses. A strong focus on investing in the skills of the nation’s youth was also essential, he added.

The CEA of India did not foresee any “nasty” surprises as far as the inflation rate was concerned. Rather, he opined that India’s inflation rate looked likely to settle around the 4 per cent target the central bank had set for the current fiscal year.

While private investment showed a gradual sign of picking up, Nageswaran felt that the volume of monsoon showers in the upcoming months would play a significant role in the growth outlook of India.