The impact of structural changes such as GST and IBC will assist increase India's GDP, said Chief Economic Advisor (CEA) Anantha Nageswaran on Wednesday.
The CEA said India is currently in a situation where the economy faces a significant number of hurdles, both from global macro monetary policies and political events, speaking at the finance ministry's iconic week celebrations of 'Azadi ka Amrit Mahotsav.'
"I also ask you to look beyond the current inflation concerns... India has emerged from the preceding decade with a well-repaired, upgraded, and reinforced financial system...not only in the banking and financial sector, but across the board (but also in the corporate sector).
"External circumstances such as the pandemic and now the geopolitical conflict may have momentarily eclipsed some of these structural reforms under the government...reforms such as the Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC), etc." However, as the clouds lift, the sun will shine and India's growth will accelerate," Nageswaran remarked.
According to the CEA, India will face challenges this year in maintaining sustained economic growth, controlling inflation, keeping the fiscal deficit in check, and ensuring that the Indian rupee's external value remains stable.
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