Mumbai (Maharashtra) [India], September 3 (ANI): Former NITI Aayog Vice Chairman Rajiv Kumar on Thursday said India’s reported 7.8 per cent GDP growth in the first quarter of FY27 is “real”, pointing to an 8.2 per cent rise in Gross Value Added (GVA) and growth in key economic indicators.
Speaking to ANI on the sidelines of the Indian Chamber of Commerce (ICC) Young Leaders Forum Special Leadership Conversation, Kumar said indicators such as automobile sales, electricity consumption and passenger traffic had all increased by more than 8 per cent.
“So the growth is, GDP growth is 7.8 but more importantly the GVA growth, which is minus the taxation, is actually 8.2, which is even a better thing,” Kumar said.
His comments came amid questions over the reported 7.8 per cent GDP growth in the April-June quarter, including concerns over revisions to the previous year’s GDP base.
Kumar, however, defended the headline growth figure and said the focus should now be on sustaining the pace of expansion.
“That’s real. Let’s not question it. Let’s try and sustain it,” he said.
He also said the pace of growth needs to be more evenly distributed, particularly among workers dependent on agriculture.
Kumar said concerns over per capita income not rising sufficiently for lower-income sections could be linked to the slower growth of agriculture, where about 45 per cent of the population is employed.
“That hasn't grown as rapidly, it's only grown at 3.6%. So we have to give policy attention to that particular segment of our workers,” he said.
On inflation, Kumar said the headline figure was not alarming, although food prices remained a concern.
“Inflation is still 4.3%, which is well within the RBI target rate of 2 to 6%. So not alarming. The WPI, the wholesale price index is actually higher than 9%,” he said.
He further added that, “If you combine the two, the production price index, PPP as they call it, they don't, … I don't call it alarming yet.”
He however cautioned that food price inflation is a cause for concern as sugar and milk prices have increased, and government should act to improve supply and bring prices down.
Kumar also described the $127 billion in FCNR(B) deposits raised by August 31 as a positive development, saying it would strengthen foreign exchange reserves and provide greater confidence on the external account.
He said conversion of these deposits into rupees could increase liquidity and improve capital flows in the economy. (ANI)
Q1 GDP growth of 7.8% ‘real’, GVA growth at 8.2% is even better: Rajiv Kumar, Former VC Niti Aayog
