Chief Economic Advisor Anantha Nageswaran on Thursday said scenarios including high oil and commodity prices as a fallout of Ukraine crisis could be challenging, but do not create a big headwind for India’s growth and it was unnecessary to imagine dark scenarios.
The conservative set of assumptions made in the Union Budget give us a better footing to handle many different scenarios of oil price, he said speaking at a panel discussion titled ‘India at 75 - The Road Ahead’, outlook for markets and economy 2022, organised by United Way of Chennai, a not-for-profit organisation.
Mr. Nageswaran pointed out that people have been saying they have downgraded India’s growth assessment for FY22-23. “But they are starting from a high level of 9-9.5% and bringing it down to 8%. However, the Union Budget itself has made an assumption of barely 6.5-7% for real GDP growth and inflation at 4-5%,” he added.
