The wheel of development will not stop, despite inflation and decrease in demand, GDP will grow at the rate of 6.5-7%

New Delhi. The government has reiterated its estimate of the economy growing at the rate of 6.5-7% in the current financial year. Based on the projections made in the Economic Survey, the government believes that there is no risk of a significant decline in growth. Despite this positive comment from the government, economic experts are keeping an eye on the upcoming GDP data and demand indicators. It will be important to see whether the growth rate remains at the projected level.

Economic Affairs Secretary Ajay Seth said at a FICCI event on Wednesday, “We started the financial year with a growth estimate of 6.5-7%. I don’t think it will have any significant negative impact. The second quarter data certainly indicates that some products and services are growing at a slower pace than last year or previous quarters. “But looking at other indicators like e-way bill or GST e-invoice data, especially for the month of October, they do not indicate any major decline in the growth rate.”

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decline in urban demand
This statement of the government has come at a time when GDP figures for the second quarter are going to be released on October 29. Also, concerns are being raised about the decline in urban demand for automobiles, consumer goods and durable goods. Meanwhile, Ajay Seth said, “There may be a slow pace in some areas, but demand from other areas is increasing. Because of this I do not see the possibility of any major problem.”

Inflation situation is not worrying
Ajay Seth also dismissed concerns over inflation, saying that prices of some food products have increased due to the prolonged monsoon, but this is temporary. He said that inflation is not a matter of serious concern.

Government’s stance on capex
When Ajay Seth was asked about the central government’s capital expenditure (capex) budget of ₹11.1 lakh crore for the current financial year, he said, “Last year the capex was ₹9.5 lakh crore and 95% of it was spent. This year there is a budget of ₹11.1 lakh crore. There may be some decrease in it, but still it will be much higher than last year.”

Tags: business news, economic growth, gdp growth