Economy to feel pinch of higher commodity prices: CEA V Anantha Nageswaran

'Employment generation is both a near-term and long-term priority', said Nageswaran

Inflation will definitely impact the Indian economy, says Chief Economic Advisor V Anantha Nageswaran. He considers the RBI’s new GDP growth estimate of 7.2 per cent as the floor for this year, and also feels that the current account deficit will be higher than expected but manageable. In an email interaction with Arup Roychoudhury, the CEA says the buffers built into the Budget should hold in spite of higher spending, and that India’s debt profile was sustainable. Edited excerpts:

The Indian economy has come out of three Covid waves and now faces headwinds from elevated crude prices and supply chain disruptions