NITI Aayog vice-president Rajiv Kumar said India’s economy will grow by more than 10 per cent in the current fiscal. He said India’s growth story is “very strong and the investment climate has improved.” Kumar stressed that the country is well prepared to deal with any third wave of COVID-19. At the same time, states have also learned the lessons of dealing with the epidemic during the last two waves.
In an interview with PTI-Language, Kumar said, “I think we are now dealing with the epidemic. Improving economic activity as we enter the second half of the current financial year.
This is how the economy moves after the second wave, which came to the forefront of a CII survey
In this context, the revival of the economy is very strong and NITI Aayog Vice President expressed confidence that agencies or firms that have reduced their Gross Domestic Product (GDP) estimates for the current financial year can revise and increase it. Will have “I expect India’s economy to record double-digit (ten percent or more) growth in 2021-22,” he said.
India’s economy fell 7.3 per cent in the last fiscal year 2020-21. Among the rating agencies, S&P Global Ratings lowered India’s growth forecast for the current fiscal year from 11 to 9.5 percent. Fitch Ratings lowered its growth forecast from 12.8 per cent to 10 per cent.
Rating agencies have lowered their growth forecasts due to the slowdown in the pace of revival amid the second wave of Kovid-19. The Reserve Bank of India has estimated the growth rate for the current fiscal at 9.5 per cent. Asked whether private investment is on the rise, Kumar said some sectors such as steel, cement and real estate are already witnessing significant investment in capacity expansion.
He said the consumer durability sector will probably take longer because consumers are still confused by the uncertainty surrounding the epidemic. Asked about a possible third wave, NITI Aayog Vice President said, “The government is well positioned to deal with any third wave. I believe the impact of the third wave on the economy is limited compared to the start of the second wave or the first wave.
The government’s preparedness is significant and at the same time states have learned their lesson in fighting the epidemic, Kumar said. The government recently raised Rs 23,123 crore. Through this, the government mainly strengthens the infrastructure of the health sector. Asked if the government could meet its investment target in the current fiscal year, Kumar said the markets were strong despite the second wave. They are now at new heights.
Kumar said, “I hope this perception does not continue, but it will be strengthened in the future. India’s story is very strong, especially in terms of FDI (FDI). The FDI has set new records for the period April-June 2020-21 and 2021-22.” Commenting on the issuance of government bonds, Kumar said, “You can name it. If the government needs it, it can raise more capital for capital expenditures. This will help attract more private investment.” Rs.
