The foundation has been laid for a GDP growth rate of 7.5-8% beyond 2021-22, says Niti Aayog vice-chairman Dr. Rajiv Kumar in an interaction with Business Today.
Kumar said that he does not agree with people who say India's GDP growth will be stuck at the Hindu Rate of growth of 3-5% for a long time. He added that such views are unduly pessimistic.
Kumar further stated that the GDP growth in 2021-22 could be 10% in real terms and 15% in nominal terms. He also predicted that GDP growth will be in positive territory in the second half of the current financial year, while the third quarter will show no growth (and no contraction), and the fourth quarter growth will be positive.
"For the full year in 2020-21, I agree with RBI estimate of 7.5% contraction in GDP," said the Niti Aayog vice-chairman.
The GDP in the second quarter contracted by 7.5% which is less than what many agencies had estimated, raising hopes of better-than-expected full-year GDP numbers for the whole year.
While Kumar said the COVID-10 pandemic had only expedited the government's reform agenda, he noted that it is necessary to explain the benefits and impact of the reforms.
On the resistance to farm sector reforms, Kumar said, "We are a vibrant democracy and people are very rational and reasonable. The nature, possible impact, and benefits of the reform have to be explained to them. And that is our responsibility, responsibility of the fourth estate and all concerned people (political parties or whoever)."