The Indian economy should grow at 7% over the remainder of this decade, according to the finance ministry’s chief economic adviser on Tuesday.

“Just recently India has surpassed the United Kingdom to become the world’s fifth largest economy in absolute terms,” V Anantha Nageswaran said at Global Fintech Fest. “While that is a creditable achievement that is not exactly a surprise. India looks at the moment well poised to repeat a sustained growth rate of around 7% for the remainder of the decade as we go into 2023 and beyond.”

The adviser recognised that growth forecasts had followed on from those made at the beginning of this year, to more than 7% for the current financial year.

India’s central bank predicts 7.2% growth this financial year, ending on 31st March, Money Control reports.

However, the views expressed by Nageswaran are in contrast to recent statements by the head of the prime minister’s economic council, Bibek Debroy. During an interview earlier this month, he said growth of more than 6.5% within the next five years would be surprising.

At the end of last week, India’s prime minister Narendra Modi said the country’s economy is forecast to grow by 7.5% this year, the highest among the world's largest economies.

In addition, the finance ministry predicts the economic recovery to be sustained over the coming months as contact-intensive services are revived and private consumption rebounds.

“The real GDP in the first quarter of 2022-23 is now nearly 4% ahead of its corresponding level of 2019-20, marking a strong beginning to India’s growth revival in the post-pandemic phase,” said the finance ministry’s department of economic affairs.

“India is in a better position to calibrate its liquidity levels without abruptly stalling growth,” it added.