Chief Economic Advisor (CEA) V. Anantha Nageswaran on Friday said the economy is expected to grow in a range of 6.5 per cent to 7.5 per cent in the current fiscal, buttressed by a strong growth momentum seen in investments and efficiency gains from rapid pace of digital transformation.
He further noted that maintaining economic growth while ensuring sustainability is important, and the government has increased investments on the ground, rather than revenue expenditure.
This, he said, is the best way to develop the economy.
Speaking at an event on "Building a Resilient Economy" with various industry leaders in Lucknow, the CEA said the Indian corporate sector has improved its balance sheet, reduced debt and increased profitability.
He further noted that due to India's sound economic policy, infrastructure built in the past eight years and digital transformation, it is possible for India to grow for a longer period rather than three to four years without running into overheating problems.
He also said India has the potential to grow 10-11 per cent in nominal terms.
The economy is in a state of autopilot, bouncing back impressively after the pandemic, and in all probability the 2022-23 GDP growth rate of 7.2 per cent will be revised upwards in the subsequent data revisions, Nageswaran added.
"Between now and 2030, based on what we have done so far without even assuming that further reforms will be done, I can say that we have the potential to grow steadily between 6.5 to 7.0 per cent and if we add the additional reforms on skilling, factor market reforms among others, we can go upto 7 to 7.5 per cent and possibly even 8 per cent," he further added.
On capex, the CEA noted that the private sector is poised to attain stronger investment growth following the strengthening of corporate balance sheets, stronger bank balance sheets which has improved their ability to lend and support from the government's capex push.
Over the medium term, investments will remain a key driver of growth, he added.