India Likely to Have Double-Digit Growth in Financial Year 2021-22, 6.5-7% in 2022, Says Chief Economic Advisor KV Subramanian
The CEA said the fiscal focus on capex is to enhance supply in the economy and capex push will be complemented by fresh private investment. Subramanian said that corporate income and profit are above the pre-pandemic level.
New Delhi, November 30: India is likely to have double-digit growth this year and is expected to see 6.5-7 per cent growth in 2022, Chief Economic Advisor KV Subramanian said on Tuesday. During a briefing on GDP numbers, he said that overall growth for the first half has been 13.7 per cent and with even a little more than 6 per cent growth in the subsequent quarters, India should be able to deliver double-digit growth this year.
"India is expected to grow by 6.5 to 7 per cent in 2022," he said. In his presentation, CEA said that India's COVID-19 policy response included both demand and supply-side measures to boost output and control inflation.
Subramanian, who would demit office next month after completing his three-year stint, said inflation should remain in control in India because of the clear policy focus on supply-side measures while enhancing demand. India’s GDP Grows by 8.4% in Second Quarter of 2021-22.
The CEA said the fiscal focus on capex is to enhance supply in the economy and capex push will be complemented by fresh private investment. Subramanian said that corporate income and profit are above the pre-pandemic level.
He said the informal sector is more impacted but hysteresis is less likely because of high labour intensity. Noting that financial sector reforms include strengthening banking sector, he said net profits of PSBs stood at Rs 14,012 crores in June 2021.
Subramanian said India's manufacturing sector has benefited from policy focus and the country has opened a special window till 2023 for manufacturing companies to set up factories.
Talking about Omicron, the new variant of COVID 19, the CEA said it seems to have created some concern."I think that we are all waiting for evidence, or how infectious would it be and how debilitating would it be as well," he said.
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