“General, all issues thought-about, together with the danger of oil worth, I do imagine that the exterior scenario shall be manageable, in fact with some anxious moments to come back,” he mentioned whereas talking at an occasion organised by Nationwide Council of Utilized Financial Analysis (NCAER) right here.
Nageswaran additional mentioned that given all of the short-term unknowns, it was higher to deal with medium-term prospects and what lies forward of the nation within the subsequent six years till 2030.
“The medium-term progress outlook is definitely constructive very just because we’ve got paid our progress dues final decade and that was as a result of we needed to endure stability sheet restore within the monetary and non-financial sector. We’re encountering international shocks happily with a much better family, company and monetary sector stability sheet,” the CEA mentioned.
Speaking in regards to the excessive debt-to-GDP ratio, Nageswaran mentioned that it was sustainable as India’s macroeconomic fundamentals are sturdy.
“Even within the ongoing international turmoil India’s borrowing price is decrease than international locations which have higher rankings than India,” Nageswaran mentioned.
“India’s bond yield has probably not spiked up. It’s doing higher than international locations which have higher credit score rankings than India. That tells us just a little bit in regards to the general macroeconomic stability that’s there underneath the present circumstances,” he mentioned.
The CEA additionally mentioned that the nation’s present account deficit may vary between 3-3.5 per cent through the present monetary 12 months relying on evolving exterior elements.
With regard to the medium time period outlook for progress, he mentioned, it might be nearer to six.5-7 per cent slightly than nearer to six per cent taking a baseline state of affairs of oil underneath USD 100 a barrel.
This progress can be largely pushed by the capital formation and sturdy public digital infrastructure resulting in formalisation of the financial system, he added.
(With inputs from PTI)
