India’s economy is expected to grow 10 percent or more in the current fiscal year, and 8 percent and more in the next fiscal year, Niti Aayog vice president Rajiv Kumar said on Tuesday.
Addressing a book launch event, Kumar further said that seven years of Modi government has laid a solid economic foundation for businesses to thrive in India.
“There has been a hiccup (in economic growth) for two years due to the COVID-19 pandemic. The IMF has forecast 9.5% growth in 2021.” According to the IMF, India will be the first fastest growing large economy for the next five years. These are underestimates, ”Kumar said.
The Reserve Bank of India (RBI) has lowered the growth projection for the current fiscal year to 9.5%, from 10.5% previously estimated, while the IMF has forecast growth of 9.5% in 2021 and 8.5% next year.
“India will experience growth of over 10% in the current fiscal year (2021-22). And in the future, once we come out of the COVID-19 pandemic, we (the Indian economy) will experience growth of over 8% in fiscal year 2022. -23, “Kumar said “Things are changing and people are ready to invest in India,” he said.
Niti Aayog’s vice president said India’s potential growth rate would rise to 8 percent. Last month, the International Monetary Fund (IMF) downgraded India’s potential growth forecast to 6% citing the pandemic.
The country’s economy grew at a record 20.1% in the April-June quarter, helped by a very weak base last year and a strong rebound in the manufacturing and service sectors despite the devastating second wave of COVID.