Synopsis The Chief Economic Advisor of India, V Anantha Nageswaran, has stated that private investment is taking place in the country and inflation is not a major concern. However, he highlighted that crude oil prices and tightening global monetary conditions pose risks. Nageswaran also mentioned that the geopolitical situation needs to be closely monitored, although it is not currently expected to have a significant economic impact. He expressed optimism about India’s economic growth, citing a rebound in private sector capital investments. Chief economic advisor (CEA) V Anantha Nageswaran Private investment is happening in India, and inflation is not a concern, but crude oil prices and tightening global monetary conditions pose a risk, said chief economic advisor ( CEA ) V Anantha Nageswaran . The geopolitical situation needs to be closely watched, he told ET on the sidelines of the International Monetary Fund (IMF) and World Bank meetings in Marrakech , Morocco . “At the moment, we do not see it (developments in West Asia) as something that causes an immediate and significant economic impact, but we will need to watch it closely,” said Nageswaran. He said India’s retail inflation is likely to be plus or minus 20 basis points of the Reserve Bank of India ‘s 5.4% forecast for this financial year. A basis point is a hundredth of a percentage point. “But the fact that inflation has come down sharply tells us very clearly that what we experienced in June, July and August was seasonal, rather than something fundamental. Overall, inflation is not a big concern,” said Nageswaran. The CEA said capital investments by the private sector rebounded in 2021-22 and 2022-23. “You also get a sense of it from import of capital goods, and capital goods data in IIP (Index of Industrial Production). In August, the growth was 12.6%, a nine-month high, which signifies a pickup in capital formation,” he said. Consumption should also hold, he said. On the IMF’s decision to raise India’s GDP growth forecast to 6.3% from 6.1% estimated earlier, the CEA said the agency’s “forecast for the Indian economy on a five-year basis is far more constructive”. “They don’t see a huge rupee depreciation. They do see the economy at close to $5 trillion in 2026-27,” he said. On China, Nageswaran said the country’s policymakers are aware of their economic challenges. “They are also very much aware of it, and they are beginning to tackle it. They have their own levers to pull. We can’t comment sitting here,” he said. He said the global economy faces significant challenges. “Crude oil price is clearly a factor and, of course, the second factor is global financial conditions becoming tighter, not only due to interest rates but also due to stock markets, which have been showing signs of going nowhere, and they have to break out one way or the other,” he said. The CEA said there is not much that India can do to boost exports. Shipments declined 2.6% in August from a year earlier to $34.5 billion. The reporter is in Marrakech at the invitation of CII. Print Edition Sunday, 15 Oct, 2023 Experience Your Economic Times Newspaper, The Digital Way! Read Complete Print Edition » Front Page Pure Politics Bottom Line Deep Dive Learn more about our print edition More FM Sitharaman Pitches for Strong, Quota-based IMF Finance minister Nirmala Sitharaman on Saturday pitched for a strong, quota-based and adequately resourced International Monetary Fund (IMF) and emphasised that a coordinated response of the global community will foster multilateralism. (Not a) Restricted Area: More Women at Work on Shop Floors An increasing number of manufacturing majors in India are challenging gender stereotypes by inducting more women on the shop floor, driven primarily by a business case to widen the talent pool. Industry Captains Fly in to Join Cheer Squad JSW’s Sajjan & Parth Jindal, Essar Group’s Anshuman Ruia, Sanjiv Goenka of RP-Sanjiv Goenka arrive by pvt jets to be among VIP attendees. Read More News on CEA V Anantha Nageswaran Morocco Marrakech Reserve Bank of India IIP Crude oil (Catch all the Business News , Breaking News Events and Latest News Updates on The Economic Times .) Download The Economic Times News App to get Daily Market Updates & Live Business News. … more less ETPrime stories of the day People From being called a maverick to handling INR1.5 lakh crore: How R Srinivasan achieved alpha at SBI MF 12 mins read Markets Sebi wants India to be a world-class trading facility. But is achieving the feat that easy? 10 mins read Disputes Byju Raveendran vs lenders: What US court documents reveal about the edtech cat and mouse 16 mins read Subscribe to ETPrime
