“General, all issues thought of, together with the danger of oil value, I do consider that the exterior scenario might be manageable, in fact with some anxious moments to return,” he mentioned whereas talking at an occasion organised by Nationwide Council of Utilized Financial Analysis (NCAER) right here.
Nageswaran additional mentioned that given all of the short-term unknowns, it was higher to deal with medium-term prospects and what lies forward of the nation within the subsequent six years till 2030.
“The medium-term development outlook is definitely constructive very just because we’ve paid our development dues final decade and that was as a result of we needed to endure steadiness sheet restore within the monetary and non-financial sector. We’re encountering world shocks luckily with a much better family, company and monetary sector steadiness sheet,” the CEA mentioned.
Speaking concerning the excessive debt-to-GDP ratio, Nageswaran mentioned that it was sustainable as India’s macroeconomic fundamentals are robust.
“Even within the ongoing world turmoil India’s borrowing value is decrease than international locations which have higher scores than India,” Nageswaran mentioned.
“India’s bond yield has probably not spiked up. It’s doing higher than international locations which have higher credit score scores than India. That tells us somewhat bit concerning the general macroeconomic stability that’s there below the present circumstances,” he mentioned.
The CEA additionally mentioned that the nation’s present account deficit might vary between 3-3.5 per cent in the course of the present monetary 12 months relying on evolving exterior components.
With regard to the medium time period outlook for development, he mentioned, it could be nearer to six.5-7 per cent fairly than nearer to six per cent taking a baseline state of affairs of oil below USD 100 a barrel.
This development could be largely pushed by the capital formation and sturdy public digital infrastructure resulting in formalisation of the financial system, he added.
(With inputs from PTI)