• Friday, March 29, 2024

Business

‘Indian economy to grow at double-digits this fiscal’

KV Subramanian (ANI Photo)

By: Shubham Ghosh

THE Indian economy is likely to witness a double-digit growth in 2021-22 and between 6.5 and seven per cent in the next financial year, the country’s outgoing chief economic advisor KV Subramanian on Sunday (14) said.

He also said that he does not expect that commodity inflation will diminish the V-shaped economic recovery in days ahead.

“I expect India to grow at double digit this year (FY22) and 6.5-7 per cent next year and over seven per cent and thereafter growth accelerating over seven per cent, Subramanian told the Press Trust of India in an interview.

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Subramanian, who decided to step down last month and will return to academia, was in Kolkata in the eastern Indian state of West Bengal to receive the Distinguished Alumnus Award from the Indian Institute of Management-Calcutta.

Financial institutions such as the International Monetary Fund and others have capped India’s growth projection between 8.7 per cent and 9.4 per cent.

According to Subramanian, people often do not take into account the impact of substantial reforms that were carried out, even in 1991 when major reforms were done but 99 per cent people did not understand implications. “We have done seminal reforms actually which will be felt going forward,” he said.

Subramanian also said inflation is 4.5 per cent and global inflation is high due to global policies that have only focused on demand in contrast to India’s policies that are focused on enhancing supply.

“When you focus on only enhancing demand without supply measures inflation is what results. Indian policy has shown a clear difference with the global financial crisis when India did only demand side measures without supply side interventions. That’s why we had double digit inflation despite without lockdown and night curfews every month for one and half years,” he said.

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