Mumbai, Aug 13
The overall momentum of the Indian economy has not slowed, as is evident from high-frequency indicators and although trade-related issues are important, they should not overshadow other critical challenges, the government's Chief Economic Advisor (CEA) V. Anantha Nageswaran said on Wednesday.
In his address at an event here, Nageswaran said the consumption slowdown last year was largely due to tight credit and liquidity conditions, prompting the government to announce substantial middle-class tax cuts in the Union Budget. The Reserve Bank of India has also cut policy rates by 100 basis points and ensured a liquidity surplus to support growth, he added
Nageswaran identified energy transition, energy security, AI’s economic impact, and sector-wide collaboration as the main challenges. He called for close coordination between public and private sectors, with resources pooled to meet national objectives. He urged the private sector to look beyond quarterly results and commit to long-term national priorities.
The CEA observed that much of urban consumption is increasingly moving from listed to unlisted companies, with inadequate data capture for services' consumption.