Economic Survey 2024: New Statistical System And Indices Will Be Reality Soon, Says CEA

Statistical system improvement work underway and newer indices and weights will be a reality soon, according to CEA. "Greenium in India not a problem," he said. "We have a high green rating."

Private capital in India and around the world need to walk the talk on those investments, explains CEA.

The Chief Economic Advisor stated that having retail investors in capital markets is beneficial, as it represents an additional deployment of savings and is a healthy and welcome development. "The issue is the kind of capital participation…speculative trading that needs attention, " he said.

"We are not pessimistic but optimistic about growth and challenges. We feel 7% is doable, we want to be cautious hence we are projecting a 6.5-7% for FY25. 7% is eminently doable but rainfall, financial risks and global geopolitical environment are important considerations," explains CEA.

"Tripartite compact needed for sustaining growth momentum. Abandoning short termism, job creation focus, R&D investment, careful deployment of capital and energy intensive technology are needed."

"India's exposure to Chinese manufacturing inputs has risen over time. Our trade deficit with China shows a steep increase in recent times."

Two forces can deepen trade deficits with China, he said:

1) Trade diversion by the West away from China.

• India's industries will be placed as intermediate suppliers between China and the West (similar to Mexico and Vietnam).

2) Drive for enhancing manufacturing capacity within the country.

• Reliance on Chinese manufacturing inputs will rise.