Economic Survey 2023-2024 has projected the Gross domestic product (GDP) to grow at 6.5–7 percent in 2024-25, thus hinting a moderation in the pace of expansion amid potential risks from cheaper imports that could affect private investment.
“A note of caution is warranted here. Private capital formation after good growth in the last three years may turn slightly more cautious because of fears of cheaper imports from countries that have excess capacity,” the Survey said.
The Survey, the maiden one authored by Chief Economic Adviser V. Anantha Nageswaran, however, flagged some challenges that loomed on the immediate horizon, obliquely advising the government to steadfastly stick to the path of fiscal consolidation and not indulge in extra borrowing to fund non-merit welfare handouts.
Union finance minister Nirmala Sitharaman is set to present the full year budget tomorrow.