Business News | No Significant Downside Risks to 2024-25 GDP Growth: Economic Affairs Secretary

New Delhi [India], November 20 (ANI): Secretary to the Department of Economic Affairs, Ajay Seth, on Wednesday asserted that the government doesn't see any significant downside risks on economic growth, despite a slight slowdown and an uptick in inflation.

Indian economy grew 6.7 per cent in the April-June quarter, lower than RBI's 7.1 per cent forecast. GDP data for July-September quarter is due at 4 pm on November 29.

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Seth, talking at the FICCI's curtain raiser ahead of the 97th AGM and Annual Convention, did accept that the economic growth in some segments has slowed down. However, Seth added there is no indication of a significant possibility of any downside risk from projected growth of 6.5 per cent to 7.0 per cent.

"Of course, it can be closer to 6.5 per cent, could be closer to 7.0 per cent, that I would not like to venture into that," Seth added.

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The Economic Survey tabled in Parliament earlier this year "conservatively" projected India's real GDP growth at 6.5-7 per cent for 2024-25, acknowledging that market expectations are higher. Real GDP growth is the reported economic growth adjusted for inflation.

The Economic Survey tabled in Parliament earlier this year "conservatively" projected India's real GDP growth at 6.5-7 per cent for 2024-25, acknowledging that market expectations are higher. Real GDP growth is the reported economic growth adjusted for inflation.

India's GDP grew by an impressive 8.2 per cent during the financial year 2023-24, continuing to be the fastest-growing major economy. The economy grew by 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22.

The growth this year to an extent was marred by a slowdown in capex spending during the Lok Sabha polls and a subsequent uptick in the inflation, particularly the food component.

As far as inflation is concerned, Secretary Seth said inflation is not a challenge beyond the food basket.

On the capital expenditure spending, he expects some undershooting in the spending, but in the same breath said it however is not a major issue.

The central government pegged the capital expenditure outlay at Rs 11.11 lakh crore for 2024-25, with an 11.11 per cent rise from the previous year. A capital expenditure, or capex, is used to set up long-term physical or fixed assets. (ANI)

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