India to grow at 7% for rest of the decade, chief economic advisor says

Chief Economic Adviser V Anantha Nageswaran

India’s economy should grow at 7 percent over the rest of this decade, the chief economic advisor to the finance ministry said on September 20.

“Just recently India has surpassed the United Kingdom to become the world’s fifth largest economy in absolute terms,” V Anantha Nageswaran said at Global Fintech Fest. “While that is a creditable achievement that is not exactly a surprise. India looks at the moment well poised to repeat a sustained growth rate of around 7 percent for the remainder of the decade as we go into 2023 and beyond.”

Nageswaran acknowledged that growth projections had come off those made at the start of 2022, to over 7 percent for the current financial year.

The central bank expects 7.2 percent grow in this financial year ending March 31.

Nageswaran's views contradict recent remarks made by Bibek Debroy, the head of the prime minister’s economic council. In a September 6 interview, he said that growth of over 6.5 percent in the next five years would be a surprise.

Prime Minister Narendra Modi said on September 16 that the Indian economy is expected to grow by 7.5 percent this year, making it the highest among the world's largest economies.

The finance ministry expects the recovery to be sustained in the months ahead amid a revival in contact-intensive services and rebound in private consumption.