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India is on track to achieve its projected economic growth of 6.5-7 per cent in the current fiscal year, reaffirmed Dr V Anantha Nageswaran, Chief Economic Advisor to the Government of India.
Speaking at the Global Economic Policy Forum 2024, organized by the Confederation of Indian Industry (CII) Dr Nageswaran highlighted the importance of sustaining long-term growth while navigating global economic uncertainties. He emphasized strengthening domestic drivers such as capital formation, innovation, and balanced development. Dr Nageswaran addressed recent concerns about a slowdown in India's economic growth in Q2 of FY25, reaffirming that India remains on track to meet its fiscal targets. He identified capital formation as a key growth enabler, with private sector participation expected to increase significantly over the next five years, driven by improved profitability and healthier balance sheets. He also highlighted agriculture, MSMEs, and energy security as vital sectors requiring targeted support to sustain growth. The Chief Economic Advisor underscored the need to address the growing challenge of mental health among India's youth. Issues like screen addiction, sedentary lifestyles, and poor dietary habits are exacerbating these concerns. "It is not just a government responsibility, but responsibility of society and the private sector as well. If India has to leverage the demographic dividend, Indians should not only be physically healthy, but also be mentally healthy"," he stated. Speaking at the summit Sunil Barthwal, Secretary, Department of Commerce & Industry, highlighted India's remarkable trade-driven growth. "Indian economy is one of the most open economies in the world, with 45.8 per cent of India's GDP coming from trade alone," he said. This marks a significant leap from 1991-92 when trade accounted for just 17.1 per cent of GDP. Barthwal also noted India's increasing integration into global value chains and the pivotal role of services in trade. Services currently contribute 43.8 per cent of India's total exports, far surpassing the global average of 24.7 per cent.With the services sector growing at over 7 per cent annually, Barthwal projected that its share in India's trade would exceed 50 per cent in the near future. He stressed the need for greater investments in education, particularly in STEM fields, and digital literacy to fully harness India's talent pool. Digitally delivered services, he added, offer resilience amid geopolitical conflicts and supply chain disruptions, playing a critical role in India's sustained economic growth. (ANI)
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