Economy may grow at double-digit rates: CEA Subramanian

NEW DELHI: Chief financial adviser Krishnamurthy Subramanian on Tuesday indicated that the Indian economic system could develop at double-digit charges, whereas sustaining {that a} withdrawal of stimulus in a number of nations could not have a major impression, on condition that India’s macro-economic fundamentals had been sturdy.
“Progress can be increased than the pre-Covid degree. The predictions within the Financial Survey and the funds ought to be achieved, primarily based on traits from the primary quarter. The funds estimate ought to be appropriate. The extent (of financial exercise) ought to be again subsequent yr, however we have to analyse the information,” the federal government’s chief economist informed reporters.
The Financial Survey had projected 11% GDP progress throughout the yr, whereas the funds estimated it at 10.5%.

Requested if the 20.1% progress estimated throughout the April-June quarter was on the account of a pointy contraction within the economic system final yr when a nationwide lockdown had been imposed, Krishnamurthy stated: “After all, there’s a base impact. On the similar time, this has occurred throughout a way more intense second wave, which was way more intense from a well being perspective. There may be throughout the board enchancment as seen in lots of excessive frequency indicators.”
After the primary quarter numbers had been launched a yr in the past, Krishnamurthy had advised {that a} V-shaped restoration will happen. He underlined that the financial fundamentals remained sturdy that may assist it climate the storm higher when world central banks suck out liquidity from the system, amid rising inflation in lots of nations.