New Delhi: Despite the second wave of COVID-19, Chief Economic Adviser (CEA) KV Subramaniam on Monday expressed hope that the economic growth during the current fiscal will be around 11 per cent as per the latest estimates. economic survey.
He also said that the overall impact of the second wave on the economy will not be huge.
“We will be in that ballpark,” Subramanian said on whether the Economic Survey’s GDP growth target will be met in the backdrop of a second wave of the pandemic.
The Economic Survey 2020-21, released in January this year, had projected a GDP growth of 11 per cent during the current financial year ending March 2022.
The survey said that the supply-side push to growth from reforms and easing of norms, emphasis on infrastructure investment, boost to manufacturing through production linked incentive (PLI) schemes, recovery in demand, from discretionary growth will get support. Consumption and credit picked up after the rollout of vaccines, given adequate liquidity and low interest rates.
He said, “We will grow at a higher growth rate this year. This year the growth will be from a lower base, but we expect a growth of 6.5-7 per cent in FY ’23 next year and from then onwards the growth will pick up even more,” he said. ”
Addressing an event organized by the Indian Construction Equipment Manufacturers Association, he said that various structural reforms including labor and agriculture laws undertaken by the government would aid the development.
Recalling the various fundamental reforms initiated in 1991, he said that they inspired the Indian economy to take on a high growth path.
Subramaniam also said that future growth would be runaway without inflation as India removed various supply-side friction points through structural reforms during the pandemic.
With regard to meeting the budget target, he said that the announced infrastructure expenditure would be met and the Finance Minister exhorted various PSUs to go ahead with their capital expenditure plans.
A capital outlay of Rs 5.54 lakh crore has been provided in the Union Budget for 2021-22, which is 34.5 per cent higher than the budget estimate for 2020-21.
The budget estimate for capital expenditure for the financial year 2020-21 was Rs 4.12 lakh crore.
He also said that the overall impact of the second wave on the economy will not be huge.
“We will be in that ballpark,” Subramanian said on whether the Economic Survey’s GDP growth target will be met in the backdrop of a second wave of the pandemic.
The Economic Survey 2020-21, released in January this year, had projected a GDP growth of 11 per cent during the current financial year ending March 2022.
The survey said that the supply-side push to growth from reforms and easing of norms, emphasis on infrastructure investment, boost to manufacturing through production linked incentive (PLI) schemes, recovery in demand, from discretionary growth will get support. Consumption and credit picked up after the rollout of vaccines, given adequate liquidity and low interest rates.
He said, “We will grow at a higher growth rate this year. This year the growth will be from a lower base, but we expect a growth of 6.5-7 per cent in FY ’23 next year and from then onwards the growth will pick up even more,” he said. ”
Addressing an event organized by the Indian Construction Equipment Manufacturers Association, he said that various structural reforms including labor and agriculture laws undertaken by the government would aid the development.
Recalling the various fundamental reforms initiated in 1991, he said that they inspired the Indian economy to take on a high growth path.
Subramaniam also said that future growth would be runaway without inflation as India removed various supply-side friction points through structural reforms during the pandemic.
With regard to meeting the budget target, he said that the announced infrastructure expenditure would be met and the Finance Minister exhorted various PSUs to go ahead with their capital expenditure plans.
A capital outlay of Rs 5.54 lakh crore has been provided in the Union Budget for 2021-22, which is 34.5 per cent higher than the budget estimate for 2020-21.
The budget estimate for capital expenditure for the financial year 2020-21 was Rs 4.12 lakh crore.
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