Speaking at the IVCA GreenReturns Summit, Nageswaran expressed confidence in the country’s economic trajectory while stressing the need to balance growth with sustainability.
“India’s potential GDP growth is in the range of 6.5–7%, and we should be able to achieve it on the back of what we have done over the last 10 years—whether it is in terms of augmenting physical infrastructure or achieving financial inclusion,” he said.
The Economic Survey has projected GDP growth for 2024-25 at 6.5–7%, a moderation from the 8.2% recorded in the previous financial year. Despite the slowdown, Nageswaran highlighted that long-term economic fundamentals remain intact, enabling the country to progress steadily towards its targets.
Focusing on investment priorities, the CEA underscored the importance of addressing intermittency issues in renewable energy. “The investment shouldn’t just focus on setting up solar power plants or wind energy plants. We need to account for the increasing cost of recycling solar panel waste and wind turbine waste. That is an area to invest in,” he explained.
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He also advocated for bolstering grid capabilities to ensure stability in the face of variable supplies from renewable energy sources. “Investing in advanced grid technologies is crucial to manage the challenges posed by intermittency in renewable energy supplies,” he added.
Nageswaran emphasised the complexity of balancing economic growth with environmental sustainability, particularly as India aims to achieve net-zero carbon emissions by 2070. “With 45 years to meet our net-zero targets, a collaborative approach to green investments is essential to address the twin goals of robust growth and sustainability,” he said.
Echoing the focus on economic resilience, Economic Affairs Secretary Ajay Seth recently acknowledged the transient challenges impacting GDP growth. He expressed optimism that the economic growth rate would significantly improve in the latter half of FY25, supported by high-frequency indicators and targeted government initiatives.
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Seth highlighted that several structural reforms, coupled with fiscal measures, would drive the country towards achieving its annual GDP target of 6.5–7%. “The government is actively facilitating policies to ensure these growth projections are realised,” Seth noted.
(With Agency Inputs)
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