“The economy is on the verge of crossing the $4 trillion mark by FY25 itself, falling slightly short, but it depends on the exchange rate,” Nageswaran said, highlighting the pace of India’s economic expansion.
The CEA also addressed recent revisions in nominal GDP estimates, which have provided a clearer picture of economic performance. He noted that earlier, tax revenue buoyancy appeared unusually high, but with GDP revisions, the numbers now reflect a more balanced view.
“When we saw the tax revenue numbers for previous years, buoyancy rates appeared to be unusually large. However, revisions in nominal GDP suggest that tax buoyancy rates were actually normal and reasonable. We had undercounted GDP growth in the past, and these revisions lend more balance to the numbers,” he explained.
Nageswaran emphasised that the revised GDP estimates now align more closely with key economic indicators such as tax revenues, asset markets, corporate earnings, and overall growth.
“There is now a better congruence between GDP numbers, tax revenue numbers, asset markets, corporate earnings, and growth,” he said.
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(Edited by : Ajay Vaishnav)