New Delhi: Indian economy will restart growing at a rate of 6.5 to 7 percent from the fiscal year 2022-23 onwards, helped by the Covid-19 vaccination drive’s progress and also the various reforms undertaken by the government so far, the Union Government’s Chief Economic Advisor Krishnamurthy Subramanian said on Friday.
According to him, the impact of the second wave of the pandemic is unlikely to be very significant.
In 2021-22, the Indian economy contracted by 7.3 percent due to the pandemic.
“Together with the reforms and focus on vaccination, I expect growth to start hitting close 6.5 to 7 percent from FY23 onwards and accelerate from there on,” Subramanian said at a virtual event organized by Dun & Bradstreet, media reports said.
“Given the significant reforms that have been carried out over the last one and a half years, I have no hesitation in saying that I look forward to a decade of high growth for India.”
He said the momentum in recovery that was seen in the fourth quarter of FY21 and overall in the second half of FY21 got impacted to some extent by the second wave of Covid-19.
While the second wave was quite devastating on the health side, its economic impact has been limited because it was much shorter in duration compared to the first wave and the economic restrictions that were placed were primarily at the state level, he pointed out.
Subramanian said various reforms undertaken by the government in sectors such as agriculture, labor, export PLI scheme, change in MSME definition, creation of the bad bank, privatization of public sector banks among others, are expected to push growth.
(VP)
