New Delhi [India], January 30 : While India has made steady progress on fiscal consolidation at the Centre, concerns are emerging over the deteriorating fiscal position of several states, said Shamika Ravi, member of Prime Minister's Economic Advisory Council (EAC-PM) on Friday.
Speaking to ANI, Shamika Ravi said the central government has been conservative from a deficit perspective.
"Our deficit has only fallen with time, so there is consolidation. However, there is some degree of concern when it comes to the state deficits. There is a need to look at why some states are moving away from the Fiscal Responsibility and Budget Management (FRBM) or the kind of gains they had nearly 15, 20 years back," she said.
Speaking on revising base years for key macroeconomic indicators, she called it essential for accurately capturing India's rapidly changing economic structure.
"This is a complex but commendable exercise. It improves the quality, credibility, and realism of India's economic data. The forthcoming new data series would help policymakers design better-informed policies," she added.
On long-term development, Ravi said the government's vision for "Viksit Bharat 2047" is being actively pursued across ministries and several states, each formulating strategies aligned with the national goal.
"Achieving 2047 is not the task of one government or one individual; it will require collective effort," she said.
Ravi highlighted that India remains fundamentally a domestic demand-driven economy, unlike smaller export-dependent markets such as Vietnam, Bangladesh, or Mexico.
"Despite global uncertainties stemming from wars, trade tensions, currency volatility, and rising gold prices, India would continue to be the world's fastest-growing major economy, supported by strong domestic consumption," she said.
On inflation, Ravi said it has not been a major concern for some time, crediting the government and the Reserve Bank of India for maintaining low inflation over a sustained period.
She pointed to recent free trade agreements with the European Union as further growth accelerators, particularly for manufacturing segments such as automobiles, auto components, and electric vehicles (EVs).
According to Ravi, the EV sector is poised for sustained expansion, driven by strong government support, joint ventures, and technology transfers.
On rising gold prices, Ravi attributed them to global uncertainty and shifts in US foreign policy affecting the dollar, noting that gold traditionally acts as a hedge during such periods.
She stressed that innovation and investment in research and development will form the bedrock of India's future growth.
Ravi said. "Initiatives such as the Research Development Innovation (RDI) Fund and the Anusandhan National Research Foundation (ANRF) signal the government's seriousness in supporting R&D while encouraging private sector participation."