RSP MP Raises Alarm Over India's Economic Growth and Currency Depreciation

Revolutionary Socialist Party MP NK Premachandran raises concerns about India's economic outlook, questioning the feasibility of achieving a 7% GDP growth target amid a worrying rupee depreciation. Finance Minister Sitharaman presents a survey forecasting growth between 6.3% and 6.8% for FY26, focusing on R&D and MSME development.

Revolutionary Socialist Party (RSP) Member of Parliament NK Premachandran has voiced significant concerns regarding India's present economic trajectory, describing the fiscal situation as "alarming." In a critical assessment of the economic outlook, Premachandran questioned the government's capacity to achieve its proclaimed ambitious growth goals.

Premachandran said that although the country aims to become a $5 trillion economy and the world's 3rd largest and fastest-growing, the second quarter of this fiscal year has delivered only a 5.4% economic growth rate. He expressed skepticism about reaching the 7% GDP growth figure crucial to achieving the $5 trillion target by 2030.

Adding to the financial woes, Premachandran highlighted the concerning depreciation of the Indian rupee, now exceeding Rs 85 against the dollar, raising questions about the potential economic strain on the nation. "The exchange rate of the Indian currency versus the dollar is alarming," he remarked.

Conversely, Finance Minister Nirmala Sitharaman presented the Economic Survey for 2024-25 in both Lok Sabha and Rajya Sabha, which were subsequently adjourned for the day. The survey projects India's economy will grow between 6.3% and 6.8% in FY26, maintaining fundamentals supported by a stable external account, fiscal consolidation, and robust private consumption.

The survey outlines government intentions to boost long-term industrial growth by prioritizing research and development (R&D), micro, small, and medium enterprises (MSMEs), and capital goods sectors to fuel productivity, innovation, and global competitiveness.

Furthermore, it expects food inflation to ease in Q4 FY25, credited to a seasonal decline in vegetable prices and the Kharif harvest's arrival. Strong Rabi output is also anticipated to stabilize food prices in early FY26. However, potential adverse weather and climbing international agricultural prices pose risks to these forecasts. (ANI)

(With inputs from agencies.)