Rigid growth rate not necessary for Viksit Bharat by 2047: CEA

Chief economic adviser V Anantha Nageswaran

In view of the Economic Survey estimating a 6.3-6.8 percent growth rate for the next fiscal, chief economic adviser (CEA) V Anantha Nageswaran on Friday said that India can accelerate its growth trajectory when global conditions turn favorable, but given the current slowdown, achieving the Viksit Bharat target requires a balanced approach.

He noted that the current global economic environment is marked by a slowdown, making it a challenging period for high growth aspirations, though India remains the fastest-growing economy.

"Global real economic activity has been declining. There is a slowdown. However, India remains the fastest-growing among large economies of the world," Nageswaran stated at the briefing after the Economic Survey was tabled in the Parliament, a day ahead of the Budget.

The survey emphasized that India must achieve an annual GDP growth rate of close to 8 percent, coupled with an investment rate of 35 percent, to realise the vision of Viksit Bharat (developed India) by 2047.

Achieving developed nation status by 2047 requires India to capitalise on periods of global economic strength while ensuring stable growth during downturns, the CEA remarked.

However, Nageswaran emphasised that achieving the Viksit Bharat goal does not require a rigid, mechanical growth rate year after year.

The Survey also called for a new wave of reforms under ease of doing business 2.0 to create a more business-friendly environment, attract investments, and sustain high economic growth. "Achieving growth rates of 8 percent for a decade or two is essential to reach our goal of Viksit Bharat," the Survey noted.

Providing an outlook for the upcoming fiscal year, the survey projected India's GDP growth to be in the range of 6.3 percent to 6.8 percent in FY26.

As a key prelude to the Union Budget, the Economic Survey sets the stage for policy measures aimed at boosting investments, enhancing productivity, and ensuring macroeconomic stability amid global uncertainties.