"Fiscal Situation Alarming," RSP's NK Premachandran ahead of Union Budget

Speaking on the economic outlook, Premachandran questioned the government's ability to achieve its ambitious growth targets.

"The country is going to become a $5 trillion economy and is on track to become the 3rd largest and fastest-growing economy in the world... But the second quarter of this fiscal year has just a 5.4% economic growth rate," Premachandran noted.

He expressed skepticism about the feasibility of meeting the 7% GDP growth target, which is deemed essential to achieve the $5 trillion economy by 2030.

Premachandran also pointed out the alarming depreciation of the Indian rupee, which has risen above Rs 85 against the dollar, questioning the economic strain this could place on the country.

"The exchange rate of Indian currency compared to the dollar is at an alarming rate," he said.

Meanwhile, Finance Minister Nirmala Sitharaman has tabled the Economic Survey for 2024-25 in Lok Sabha and Rajya Sabha. Soon after, both the houses were adjourned for the day.

As per the Economic Survey tabled on Friday, India's economy is projected to grow between 6.3 per cent and 6.8 per cent in FY26.

The survey highlights that the country's economic fundamentals remain strong, supported by a stable external account, fiscal consolidation, and private consumption.

It noted that the government plans to strengthen long-term industrial growth by focusing on research and development (R&D), micro, small, and medium enterprises (MSMEs), and capital goods. These measures aim to enhance productivity, innovation, and global competitiveness.

The survey noted that food inflation is expected to ease in Q4 FY25 due to the seasonal decline in vegetable prices and the arrival of the Kharif harvest. A good Rabi production is also expected to help keep food prices in check in the first half of FY26. However, adverse weather conditions and rising international agricultural prices pose risks to inflation. (ANI)