Despite high crude oil prices, India will achieve 6.5 percent GDP growth in FY 2024: NITI Aayog member – Dainik Savera Times
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New Delhi: NITI Aayog member Arvind Virmani said on Thursday that despite high crude oil prices and increased uncertainty due to climate change, the Indian economy will grow at the rate of about 6.5 percent in the current financial year 2023-24. Virmani also said that the gross domestic savings ratio in India has continuously increased. The NITI Aayog member said in an interview to ‘PTI-Bhasha’, “My growth estimate (of India’s GDP growth) is 6.5 percent… because I think we have more or less adjusted to the fluctuations in global GDP.” Has gone.”
On claims that some US-based economists are overstating India’s economic growth, Virmani said he has observed that some former officials did not know how to construct GDP as they came from academic backgrounds. The Finance Ministry had also last week rejected criticism of the inflated GDP and said it followed the consistent practice of using income side estimates to calculate economic growth. The ministry emphasized that many international agencies have changed their estimates after looking at the first quarter data.
India’s economic growth rate (GDP) for 2022-23 was 7.2 percent, which is 9.1 percent less than 2021-22. According to the estimates of the Reserve Bank of India, India’s GDP is likely to grow at the rate of 6.5 percent in the current financial year. The eminent economist said that “crude oil prices” have become a matter of concern for India. Virmani said, “If we talk about 10 years ago… Saudi Arabia and the US were more or less on the same geopolitical platform and they used to coordinate things… but this situation has changed in the last five years.” ‘
International crude oil prices crossed the US$90 per barrel level for the first time in 10 months. Currently around US$92 per barrel. He said, “Recently, we have seen that when oil prices started coming to a reasonable level, it (Saudi Arabia) cut oil production and Russia also did the same.” According to Virmani, El Nino The issue of the status of land has again come to the fore and uncertainty has increased due to climate change. On the question about domestic savings falling to a five-decade low, Virmani said that not gross domestic savings, but net domestic savings are falling. He said, “Gross domestic savings ratio has increased continuously. The net household savings ratio is declining as consumer credit is increasing rapidly.
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