Economic Affairs Secretary Ajay Seth has said that economic growth of India may have slowed in the September quarter (Q2), but overall there is not much downside risk to 6.5-7 per cent growth in the current fiscal year (FY25). Seth said while some goods and services may not have grown at the same pace as in the last year in the second quarter of the current fiscal year, data on e-way bills and e-invoices does not indicate any significant downside possibility to the full year 6.5-7 per cent growth projected in the Economic Survey.
The secretary also said food prices have been a concern but other than that, inflation is not a challenge for India. On capex, he said the government’s capital expenditure may see some undershooting of the Rs 11.11 lakh crore in the current fiscal year. But the capex will be higher than Rs 9.5 lakh crore in the last fiscal year.
The Indian economy grew 6.7 per cent year-over-year in the April-June period of FY25. Although this marks the slowest growth in five quarters, India ranks among the fastest-growing major economies globally. India grew 8.2 per cent in the 2023-24 financial year.
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