The chief economic advisor (CEA) V Anantha Nageswaran, on Wednesday, said that the Indian economy is likely to grow at the rate of 6.5% in the coming decade on the back of the turnaround in financial and investment cycle, according to a PTI report.

According to him, the global exports growth volumes may be somewhat tepid in terms of their growth rates due to the kind of uncertainties the world is facing.

“So, I think the restoration of the financial, credit and the investment cycle in the commercial sector and the real estate sector will probably see us growing on an average of six and a half per cent in the coming decade,” said CEA in a statement.

The report further noted that the finance ministry’s Economic Survey has projected the economic growth to be 6.5% in the 2023-24 fiscal beginning April 2023, while the RBI has projected India’s economic growth to slow down to 6.4% in FY24 from 7% in the current fiscal.

On the backdrop of this, Nageswaran attributed the slowdown in India’s economic growth just before COVID-19 pandemic to the classic financial cycle distress that India went through.

“If you look at data from 2012 onwards, so basically the pre-pandemic period itself, we went through a period of classic financial cycle repair, credit cycle repair, which is what brought down a slowdown in the construction sector, and real estate sector,” he added in the statement.

Referring to India’s energy security, Nageswaran opined that there is tremendous pressure on energy transition for justifiable reasons and asked, “So there is no question of denying that there is a need for energy transition, but the question is how do we go about it?

In addition, being asked about the production-linked incentive (PLI) scheme, the CEA said the exit clause is very important for any scheme. The objective of the PLI scheme is to make domestic manufacturing globally competitive, create global champions in manufacturing, boost exports and create jobs.