Q2 GDP growth forecast set for upward revision: CEA

New Delhi:Chief Economic Advisor (CEA) V Anantha Nageswaran on Thursday said economic activity in some sectors have picked up pace during October-November and a GDP growth of 6.5-7 per cent in the current fiscal is feasible.

He also said that the 5.4 per cent second quarter GDP growth estimate could be revised upwards going forward, as the current estimates are not seasonally adjusted. “I think in reacting to these numbers, I don't think we should throw the baby out with the bathwater. Because the underlying growth story still remains very much intact,” Nageswaran said.

India’s economic growth slowed to a seven-quarter low of 5.4 per cent in the July-September quarter, from 6.7 per cent in the April-June quarter. Nageswaran said the slowdown in GDP growth in the second quarter could be because of some ‘religious observances’ in September and excess monsoon rainfall, could be also because of other more long-standing issues that are beginning to emerge.

Deregulation will be the big theme for the upcoming Economic Survey 2024-25 with an aim to push job creation and increase female workforce participation, the CEA said.

“We touched upon it quite a bit in the economic survey in July and that is going to be the big theme. Deregulation or letting go is the big theme for the coming economic survey as well,” Nageswaran said.

So explanations could be from mundane to more serious ones, he said, adding this is the first estimate for second quarter GDP growth. “It could be revised higher,” Nageswaran said. He said the Economic Survey had projected 6.5-7 per cent for financial year 2024-25.