New Delhi: India could return to a growth rate of over 7 per cent by FY28 if macroeconomic stability is maintained and supply-side reforms continue, Chief Economic Adviser V. Anantha Nageswaran said on Friday.
His statement comes at a time when global uncertainties continue to cloud the near-term economic outlook.
The remarks were made shortly after the Reserve Bank of India revised its GDP growth forecast for FY27 downward to 6.6 per cent, compared to 6.9 per cent projected in April.
The central bank cited rising energy and commodity prices along with ongoing supply disruptions linked to the conflict in West Asia as key risks affecting growth.
Addressing reporters in the national capital, Nageswaran said the government is not disputing the RBI’s revised estimates, given the highly uncertain global environment. He noted that the current situation presents both upside and downside risks to the growth outlook.
“We have no reason to second-guess them (RBI forecast) at this point, because there are both possibilities on the upside and on the downside with respect to the numbers that they have presented,” he said.
He added that India’s growth momentum could strengthen once external pressures ease, particularly if global conditions stabilise in the coming years.
“The economy could return to a stronger growth path after temporary disruptions settle,” he said.
“So, even if the growth were to slip below 7 per cent as the RBI forecast suggests… macro stability measures and supply assurances will bring us back to a 7 per cent plus growth track in FY28 or as soon as external conditions improve,” Nageswaran added.
Nageswaran also said this recovery scenario depends on a reversal of geopolitical and economic disruptions that have emerged since late February.
He cautioned that the outlook remains conditional on how global developments unfold in the near term.
“Now, if these conditions continue, then we will revisit the estimate for the next financial year,” he added.
(IANS)
