Ground Report | New Delhi: Economy to register double; NITI Aayog Vice-Chairman Rajiv Kumar has expressed hope that the Indian economy will register a growth of 10 percent or more in the current financial year. He has said that the disinvestment environment is looking better.
Economy to register double-digit growth
Kumar said in an interview with news agency PTI, “Hopefully we are now leaving the (corona) epidemic behind. Economic activities will improve as we enter the second half of the current financial year. Many examples, such as speed in traffic, etc., are indicating the same.
The Vice-Chairman of NITI Aayog expressed confidence that the recovery of the economy is very strong and the agencies or organizations which had reduced their GDP estimates for the current financial year, may have to revise it and increase it now. “I expect the Indian economy to register double-digit (ten percent or more) growth in 2021-22,” he said.
Indian economy has declined by 7.3 percent
In the last financial year 2020-21, the Indian economy has declined by 7.3 percent. Among the rating agencies, S&P Global Ratings has reduced India’s growth rate forecast for the current financial year from 11 to 9.5 percent. Fitch Ratings has also lowered the growth rate forecast from 12.8 to 10 percent.
Rating agencies have reduced their growth rate estimates due to slow recovery in the midst of the second wave of COVID-19. The Reserve Bank of India has estimated the growth rate of the economy at 9.5 percent in the current financial year.
Asked whether the private investment would pick up, Kumar said some sectors like steel, cement, and real estate are already witnessing significant investment.
He said that the consumer durables sector will probably take more time, as customers are still confused due to the uncertainty about the epidemic.
Impact of the third wave
When asked about the possible third wave of Corona, the Vice Chairman of NITI Aayog said, “The government is in a much better position to deal with any possible third wave. I believe that the impact of the third wave on the economy will be limited compared to the beginning of the second wave or the first wave. ”
Kumar said that the preparations of the government are quite remarkable and at the same time the states have also learned their lesson in dealing with the pandemic.