NEW DELHI: Economic Affairs Secretary Ajay Seth on Friday said Budget proposals are non-inflationary and will help achieve 7 per cent-plus growth rate for the fourth year in a row in 2024-25.
Although there are external risks arising from geo-political tensions, “the growth rate of about 7 per cent next year is eminently doable,” Seth said. Having contracted 5.8 per cent in 2020-21, the Indian economy recorded a growth rate of 9.1 per cent in the following year. The Gross Domestic Product (GDP) growth rate was 7.2 per cent in 2022-23 and is estimated to inch up marginally to 7.3 per cent in the current financial year.
The interim Budget 2024-25 projected a nominal GDP growth 10.5 per cent against the 11 per cent for the current fiscal. The nominal GDP for BE 2024-25 has been projected at Rs 3,27,71,808 crore, assuming 10.5 per cent growth over the estimated nominal GDP of Rs 2,96,57,745 crore, as per the First Advance Estimates of FY24.
“The estimates, which we have assumed are 10.5 pc, and which we feel is a realistic estimate of normal growth rate for the next year,” Seth said. As far as the current fiscal is concerned, the economy is doing very well and the policies, the fiscal stance, as well as the emphasis on capital expenditure will have much higher multiplier effect and generate employment, he said.