Economic Growth Prospects Brighten

The Indian economy is poised for a significant boost in the March quarter, thanks to a combination of factors including a rebound in public capital expenditure, steady growth in non-oil exports, and substantial private consumption expenditure by attendees of the Maha Kumbh. Chief Economic Adviser V Anantha Nageswaran expressed optimism about the economic outlook, highlighting the potential impact of these drivers on achieving the full-year growth estimate of 6.5%.

Private Sector Investment Encouraged

Nageswaran also urged the private sector to increase investments, pointing out the improving urban demand and significant income tax cuts announced in the Budget. Despite global uncertainties, Indian companies have seen a pick-up in outbound FDI, indicating strong economic fundamentals and investor confidence in the Indian market.

Global Economic Outlook and India's Position

While acknowledging the challenges posed by global trade policies and market volatility, Nageswaran remains confident in India's economic momentum. He cited strong rural demand and a revival in urban consumption as key factors sustaining growth, alongside the positive impact of remittances and exports on the current account deficit.