India’s chief economic adviser (CEA) KV Subramanian is hopeful that economic growth during the current fiscal would be around 11 per cent as projected in the latest Economic Survey. He also did not foresee a very high overall impact of the pandemic’s second wave on the economy. "We will be in that ballpark," he said, when asked about the growth target.
The Economic Survey 2020-21 was released in January this year.India's chief economic adviser (CEA) KV Subramanian is hopeful that economic growth during the current fiscal would be around 11 per cent as projected in the latest Economic Survey. He also did not foresee a very high overall impact of the pandemic's second wave on the economy. "We will be in that ballpark," he said, when asked about the growth target.#
The Survey had said gross domestic product growth will be supported by supply-side push from reforms and easing of regulations, push for infrastructural investments, boost to manufacturing sector through the production-linked incentive (PLI) schemes, recovery of pent-up demand, increase in discretionary consumption subsequent to rollout of vaccines and pick up in credit given adequate liquidity and low interest rates.
"We will grow at a high growth rate this year. This year growth will be from the lower base but we anticipate 6.5-7 per cent growth next year FY23 and from thereon, growth accelerating even further," he was quoted as saying by a news agency.
Growth will be aided by various structural reforms, including labour and farm laws, undertaken by the government, he said while addressing an event organised by the Indian Construction Equipment Manufacturers' Association.
Subramanian also said future growth would take place without runaway inflation as India has removed various supply-side friction points through structural reforms during the pandemic.
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