India’s economy is projected to grow at a rate of 6.5-7% for the current financial year on a steady-state basis, according to Chief Economic Advisor (CEA) to the Union government, V Anantha Nageswaran.

He highlighted that this growth rate is impressive given the current global conditions.

Speaking virtually at an event organised by the Bengal Chamber of Commerce and Industry (BCCI), Nageswaran noted that the economy is expected to grow at 6.5% in real terms, while the nominal growth rate, factoring in inflation, will reach 11%, The Economic Times reports.

"The Indian economy is poised to remain the fastest growing in the current financial year with a growth rate of 6.5-7% on a steady state basis. This is a very good achievement in the current global context," Nageswaran said.

He added that although the world is experiencing medium-term uncertainties with global trade slowing significantly, India's post-COVID recovery is now solidified thanks to the government's measured fiscal and monetary policies.

"Post-COVID recovery in India is cemented due to prudent macro-economic management which laid the foundation of economic growth with stability," he said.

In addition, Nageswaran stated that the country currently has no vulnerabilities in its current account balance, and both domestic financial markets and the banking system are in robust condition.

"The macro indicators signal stability. There has been a massive shift in capital expenditure, declining external debt to GDP ratio and lower retail inflation," Nageswaran said.

"The macro indicators signal stability. There has been a massive shift in capital expenditure, declining external debt to GDP ratio and lower retail inflation," he went on to add.

He noted that all these factors justify an upgrade of the country’s credit rating, emphasising that the economy's supply-side capabilities have improved, which has also contributed to keeping inflation under control.

"All these will help maintain a steady growth rate over the next several years. And India needs to find domestic sources of growth," the CEA continued.