India expects FY25 growth of over 7%, says CEA V Anantha Nageswaran | Economy & Policy News

India does not see any nasty upside to inflation at the moment, and expects its economy to expand by more than 7 per cent in the current fiscal year, V. Anantha Nageswaran, the government’s chief economic adviser, said on Wednesday.

 

Annual retail inflation rate eased in March to a five-month low of 4.85 per cent, helped by a drop in fuel prices.

 

“We don’t see, at the moment, scope for nasty upside surprises (on inflation),” Nageswaran said at an event in the capital, New Delhi.

 

“There can always be scenarios in geopolitics that can cause inflation to be more than we expect, but at this point the baseline scenario is that inflation gradually converges to the mid-point of the target range.”

 

India’s monetary policy committee is mandated to keep inflation within a target range of 2 per cent to 6 per cent and the central bank, the Reserve Bank of India, wants to see it at 4 per cent before cutting rates.

 

Nageswaran said the Indian economy was better placed than before to pursue “non-inflationary” growth.

 

He sees economic growth touching 8 per cent in the last fiscal year that ended on March 31, and expects growth of 7 per cent for the current fiscal year, which began on April 1.

 

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First Published: May 08 2024 | 11:30 AM IST