India Committed To Make Sure Capex Continues To Support GDP Growth: CEA
The banking industry has a very important role to play in sustaining the current growth scenario, Nageswaran says.
The government is committed to ensure that capital expenditure continues to sustain the growth momentum seen after the third wave of Covid-19, Chief Economic Adviser V Anantha Nageswaran has said.
The government has taken various steps -- tax cuts, privatisation and asset monetisation -- to strengthen the real economy, he said.
"Given the ongoing sense of uncertainty among private sector participants, both in banking and the non-banking world, the government is committed to making sure that capital expenditure continues, such that the growth impulse that we have regained after third wave is not surrendered," said Nageswaran at a banking event organised by The Financial Express.
In the previous fiscal, while the capital expenditure was budgeted at Rs 6 lakh crore, the government managed to spend Rs 5.92 lakh crore.
"And hence, for the current financial year, if the government is able to execute the capital expenditure of Rs 7.5 lakh crore, then that is the biggest real economic intervention," Nageswaran said.
Speaking about the banking industry, the chief economic adviser said the sector has a very important role to play in sustaining the current growth scenario and turning the country's relative advantage today into a source of absolute growth advantage over other nations.