India's strong economic momentum continues despite global uncertainties, says Chief Economic Adviser
India's economy shows strong near-term momentum, driven by domestic factors and exports. The Reserve Bank of India's deposit mobilisation offers significant balance of payments support. This action also provides a stable floor for the Indian rupee against the US dollar. All three economic sectors contributed to the first quarter's robust GDP growth. Structural reforms implemented over the past…
New Delhi: Chief Economic Adviser V Anantha Nageswaran declared on Monday that India's domestic economic momentum remains robust in the near future, despite ongoing uncertainties worldwide. He attributed the success to the Reserve Bank of India's effective utilization of FCNR (B) deposits, which has significantly bolstered India's balance of payments and offered a support level for the local currency against the US dollar.
Nageswaran made these remarks following the release of the first quarter GDP data. He emphasized, "The domestic economic momentum is very strong in the near term, even as uncertainties persist globally." He further stated that while global concerns persist regarding interest rates, energy commodity supplies, and food prices, India's domestic momentum and export performance have collectively driven another quarter of robust growth.
The CEA highlighted that all three sectors - primary, secondary, and tertiary - have contributed to the GDP growth in the first fiscal quarter. Although agriculture's contribution was slightly less, manufacturing and services sectors performed exceptionally well, even amidst the geopolitical tensions in the West Asia region.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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