India's robust digital infrastructure can push GDP, says Chief Economic Adviser

NEW DELHI:

Chief Economic Adviser V. Anantha Nageswaran on Tuesday said that digital investments will mainly drive the country's growth, as they would act as "growth magnet" in the near future.

Addressing a press conference after the release of the Economic Survey for 2022-23, Nageswaran said India's robust digital infrastructure has the potential of adding around up to 100 basis points to India's GDP rate.

On the Economic Survey, which was tabled in Parliament by Finance Minister Nirmala Sitharaman earlier in the day, Nageswaran said that India is set to perform in this decade owing to the reforms unleashed by the government in the last eight years.

"Reforms of the last eight years spanning multiple dimensions including digital, social and physical infrastructure were happening even as banking clean up was going on," he said.

He also said that India's post-pandemic basic economic recovery is complete and the non-banking and corporate sectors have shown good financial health.

On GDP numbers, Nageswaran showed optimism that the Indian economy is set to grow faster once the global shocks of pandemic and Russia-Ukraine war recede.

"In its World Economic Outlook update, the IMF has maintained India's GDP forecast for current FY at 6.8 per cent, next FY at 6.1 per cent, and for 2024-25 at 6.8 per cent. Recovery of the economy is complete," he said.

Nageswaran further said that the quality of public expenditure has improved and the government has maintained transparency in public procurement.

"Various such dimensions have led to improved expenditure management," he added.


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