CII confident of surpassing Economic Survey's growth forecast for FY25

Economic Survey 2023-24: Reacting to the Economic Survey 2023-24 tabled in Parliament, Sanjiv Puri, President of the Confederation of Indian Industry (CII), expressed confidence that India's GDP growth for FY25 will exceed the forecast provided in the Survey. He suggested that under certain conditions, the economy could achieve an 8 per cent growth rate.

"The Survey is positive about the India growth story, and I am confident that India's GDP growth for FY25 will surpass the forecast given in the Survey. It has the potential to reach 8 per cent, driven by excellent macro-financial management and a facilitative policy environment that includes a thrust on capital expenditure and inflation control," Puri said. He added that a consensus on the reform agenda among the central government, state governments, and the private sector is key to achieving sustained growth of 7 per cent or more.

Chief Economic Advisor (CEA) V. Anantha Nageswaran highlighted the potential of labour-intensive sectors such as tourism, the care economy, and food processing to increase employment, which is critical for the economy.

Puri praised the Survey for its focus on six key areas for "Amrit Kaal," which include boosting private investment, growth and expansion of MSMEs, positioning agriculture as a growth engine, financing the green transition, bridging the education-employment gap, and building state capacity and capability. These initiatives, he said, would fast-track India's long-term vision for a developed nation (Viksit Bharat).

"The recognition of the need to invigorate the agriculture sector to boost rural demand and the focus on improving the quality of life in the hinterland and stressing on the social sector such as healthcare are well-placed. These steps will empower the marginalised and ensure that every Indian becomes a stakeholder in New India," Puri added.

The CII President also reiterated support for the reforms agenda proposed in the Survey for the medium term, expressing hope that the forthcoming Budget would implement some of these measures to unlock the growth potential of the Indian economy.

CII Director General's statement on Economic Survey

Chandrajit Banerjee, Director General of CII, also reacted positively to the Economic Survey, describing it as pragmatic and forward-looking. He stated that the Survey offers a futuristic vision to propel India towards achieving developed economy status by 2047.

"The Survey provides a wealth of information and a rich repository of data sets on all parameters of the economy, offering in-depth analysis of key macroeconomic parameters. The articulated agenda for advancing both public and private sectors is reassuring and would be great for industry to take forward in mission-mode," Banerjee said.

He shared CII's optimism regarding the Survey's economic growth projection of 6.5-7.0 per cent for FY25, believing that the actual growth could surpass these projections despite rising geopolitical uncertainties, thanks to strong macroeconomic fundamentals and next-gen reforms.

Banerjee highlighted several noteworthy initiatives mentioned in the Survey, including the focus on agriculture, capital expenditure, asset monetization, reducing the education-employment gap, enhancing manufacturing and ease of doing business, expanding MSMEs, making India a drone hub by 2030, and advancing sustainability and climate financing. He believes these initiatives will rev up the growth engines of the economy.

Source: Republicbiz