Indian economy expects a double digit growth in 2021-22

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Kolkata: Indian economy is expected to see double-digit growth in 2021- 22 and between 6.5-7 percent in the next financial year, outgoing Chief Economic Adviser KV Subramanian said today.

The CEA said that he does not expect commodity inflation will taper the V-shaped recovery going forward.

“I expect India to grow at double-digit this year (FY22) and 6.5-7 percent next year and thereafter growth accelerating over seven percent,” Subramanian told PTI in an interview.

Subramanian said people often do not take into account the impact of substantial reforms that were done, even in 1991 reforms were done, 99 percent of people did not understand the implications. “We have done seminal reforms actually which will be felt going forward.”

He said inflation is 4.5 percent and global inflation is high due to global policies that have only focused on-demand in contrast to India’s policies that are clearly focused on enhancing supply.

“When you focus on only enhancing demand without supply measures inflation is what results. Indian policy has shown 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,” Subramanian said in a dig at the then government.

Source- PTI