Economic Survey: Growth rate will drop below seven percent

NEW DELHI: The economic review survey by the central government has predicted that the growth in gross domestic product (GDP) will fall to 6.5 to 7 percent in the current financial year. The survey was published ahead of the third Modi government's first budget to be presented today by Finance Minister Nirmala Sitharaman. The GDP growth in the last financial year was 8.2 percent.

Finance Ministry Chief Adviser Anantha Nageswaran said the conservative outlook on GDP growth has been taken in view of inflation, monsoon availability and uncertainty in global financial sectors.

India achieved excellent growth in the last financial year overcoming adverse conditions in the global sector. This time there will be good progress in product and service exports in the country. As India has achieved good growth in the last three years, caution should be taken in the sharp increase in imports of cheap products from foreign markets.

Inflation under control

The report also says that India has returned to its pre-Covid growth cycle. Low prices of market products and high availability of products brought inflation under control in the country. However, if the political tensions in West Asia intensifies, the threat of inflation may rise again. The survey also says that India's fiscal deficit will come down to 4.5 percent of GDP in the next financial year. Global political conditions, skill development and the advent of artificial intelligence pose new challenges.