7% Growth Forecast For Current Fiscal "Very Realistic": Chief Economic Advisor

The GDP growth forecast of 6.5 per cent for the next fiscal is well within the range of forecast by other agencies like OECD and ADB but there are downside risks, said Chief Economic Advisor V Anantha Nageswaran.

Chief Economic Advisor V Anantha Nageswaran on Tuesday said high frequency data indicate buoyant economic growth momentum and the 7 per cent GDP growth estimate for the current fiscal is very realistic.

He also said that there are enough signs that manufacturing is in good health.

"Inflation is softening and the pass through from wholesale prices has run its course… we do have some uncertainty related to monsoon because of El Nino activity… we need to be ready with both supply side and monetary policy measures in the course of the next financial year," Mr Nageswaran told reporters.

According to him, the GDP growth forecast of 6.5 per cent for the next fiscal is well within the range of forecast by other agencies like OECD and ADB but there are downside risks.