Niti Aayog pegs10% GDP growth in current fiscal

New Delhi, November 2

Indian economy is expected to grow by 10% or more in the current fiscal, and 8% plus in the next fiscal year, Niti Aayog Vice-Chairman Rajiv Kumar said on Tuesday.

Addressing a book launch event, Kumar further said seven years of the Modi government has laid a strong economic foundation for businesses to thrive in India.

“There was a hiccup (in economic growth) for two years due to Covid pandemic. The IMF has projected a growth of 9.5% in 2021.

“According to the IMF, India will be the fastest growing major economy for the next five years. These are underestimations,” Kumar said.

The RBI has lowered the growth projection for the current financial year to 9.5% from 10.5% estimated earlier while the IMF has projected a growth of 9.5% in 2021 and 8.5% in the next year.

“India will grow at 10% plus in the current fiscal year (2021-22). And going forward, once we are out of the Covid pandemic, we (Indian economy) will grow at 8% plus in FY 2022-23,” Kumar said.

“Things are changing and people are ready to invest in India,” he said. The Niti Aayog Vice-Chairman said the potential rate of growth of India will move up to 8%.

Last month, the International Monetary Fund (IMF) had revised India’s potential growth forecast downwards to 6% citing the pandemic.

Potential growth is the rate of growth that an economy can sustain over the medium term without generating excess inflation.

The country’s economy grew by a record 20.1% in the April-June quarter, helped by a very weak base of last year and a sharp rebound in the manufacturing and services sectors in spite of the devastating second Covid wave. — PTI

The projections

• The RBI has lowered the growth projection for the current financial year to 9.5% from 10.5% estimated earlier while the IMF has projected a growth of 9.5% in 2021 and 8.5% in the next year
• The Niti Aayog Vice-Chairman said the potential rate of growth of India will move up to 8%
• Last month, the IMF had revised India’s potential growth forecast downwards to 6% citing the pandemic