India to achieve 6.5% growth comfortably in FY24: CEA

New Delhi: With the economy increasing at 7.6% in real terms in the September quarter, India is now on track to attain 6.5% growth comfortably in the current fiscal year, according to chief economic adviser Anantha Nageswaran on Thursday.

"We are more comfortable with the 6.5% growth forecast for FY24 now," Nageswaran said at a press conference following the announcement of the second quarter GDP numbers by the statistics ministry today. The CEA reported that second-quarter growth of 7.6% was higher than private projections, and that the economy had maintained momentum following its recovery from the pandemic.

According to Nageswaran, India's real GDP growth in the September quarter was higher than that of several other nations during their third quarter, highlighting the quicker yearly development in the manufacturing sector in the September quarter.

"In general, rural demand is consistent, if not outstanding... "Private sector capital is not a plane waiting to take off, but a plane that is already in flight," Nageswaran added.

The chief economic advisor also stated that the current fiscal year's tax buoyancy, comprising both direct and indirect taxes, is 16.3%, compared to nominal GDP growth of 8.6%, resulting in a tax buoyancy of 1.9%. 

The tax buoyancy for this fiscal year is 16.3%, which is 1.9 times the nominal GDP growth rate of 8.6%.

According to Nageswaran, the government's fiscal management is on track. In light of the 7.6% second-quarter growth, the Centre is expected to reconsider its full-year growth projections.