CEA expects private sector capex to touch Rs.6 trillion in FY23

According to chief economic advisor (CEA) V Anantha Nageswaran, economists’ projections of India’s GDP growth for 2022-23 in the range of 6.5 per cent to 7 per cent looks reasonable. However, risks to six per cent GDP growth estimates for 2023-24 are to the upside. On drivers of economic growth, he stated there has been a threefold increase in capital expenditure (capex) of the public sector in the last 10 years. Capex by the private sector also touched Rs.3 trillion during April-September 2022 and if the pace continues, capex should be Rs.6 trillion by March 2023. The CEA further stated that the country’s current account deficit (CAD) is expected to be 3-3.2 per cent of GDP for 2022-23.