Indian economy will grow at the rate of 6.5 percent in the current financial year: Virmani

Despite high crude oil prices and rising geopolitical tensions, the Indian economy will grow at around 6.5 per cent in the current financial year (2023-24). NITI Aayog member Arvind Virmani has expressed this opinion. Virmani said he does not expect the US and European banking crisis to have any impact on India’s financial sector. He said, “So because of all the changes that happened in the last year, I have reduced my India’s economic growth forecast for 2023-24 by half a percentage point.”

He told PTI that the Indian economy will grow at 6.5 per cent in the current financial year. It can be up or down half a percent. The World Bank and the Asian Development Bank have recently projected that the Indian economy will grow at 6.3 to 6.4 per cent in the current fiscal due to a slowdown in consumption and challenging external conditions. The International Monetary Fund (IMF) has also reduced India’s economic growth forecast for the current financial year from 6.1 percent to 5.9 percent. However, despite this, India will remain the fastest growing economy in the world.

On the Reserve Bank of India’s flexible inflation targeting, Virmani said, “We should be like the US Federal Reserve, which has an inflation target, but also takes into account the gross domestic product (GDP).” The target is to keep retail inflation at 4 per cent (up or down 2 per cent). Asked whether India can replicate the economic success that has made China the center of the world economy and global power, Virmani said he does not think any other country will now be allowed to have unfair trade policies that China has been doing it. “I estimate that if China had not adopted unfair trade policies, its growth would have been one-third less,” he said, adding that India would have achieved 6.5 to 7 per cent growth without such policies. Could

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