Pandemic-induced eco slowdown thing of the past: CEA

Kolkata: Private consumption in the third quarter of FY 2023 had exceeded pre-pandemic levels, revealed chief economic adviser V Anantha Nageswaran at an interaction at Bharat Chamber of Commerce on Saturday.
Nageswaran was speaking on the theme of ‘The decade of India’s growth and prosperity... the beginning’. The CEA said this pattern of private consumption showed pent-up demand.While adding that this trend may be due to the urban consumption pattern, Nageswaran pointed out these classifications were changing fast. “What was earlier considered rural is now being classified as urban,” the CEA said.
“The economic slowdown induced by the pandemic is a thing of the past,” he said.
Days ago, RBI governor Shaktikanta Das had said the central bank expected India’s 2023-24 GDP growth rate to be 6.5%.
Nageswaran, too, said the momentum sustained in the first two months of this financial year augured well for a respectable 6.5% growth.
High-frequency indicators like domestic auto sales, steel consumption, rail freight and port cargo in April gave a good signal for the first quarter of FY 2024, the CEA said.
Foreign portfolio investors entering the Indian market in an aggressive manner after February 2023 had also provided good momentum, Nageswaran said, adding that the forex reserve was sufficient for India to cover 10 months of imports. He also spoke on government support provided to MSMEs and startups.
H M Bangur, Rishi Bagree and Rajkumar Agarwal made presentations on behalf of Bharat Chamber of Commerce.