scorecardresearch
India expected to grow at 6.5%-7% next fiscal and over 7% thereafter: CEA

India expected to grow at 6.5%-7% next fiscal and over 7% thereafter: CEA

Subramanian said India's economic output for the 2021/22 fiscal year ending on March 31 will be at "double digit" levels.

Chief Economic Adviser (CEA) KV Subramanian Chief Economic Adviser (CEA) KV Subramanian

India is likely to grow at 6.5 per cent to 7 per cent during 2022-2023 period, said Chief Economic Adviser K V Subramanian on Tuesday after releasing the gross domestic product (GDP) data for the July to September quarter.

Subramanian said India's economic output for the 2021/22 fiscal year ending on March 31 will be at "double digit" levels. India's fiscal year starts on April 1 and runs through March.

"The GDP numbers clearly show recovery continued robustly this year," the CEA added. The recovery was not less noteworthy despite low-base effect, he added.

Focus is on creating assets via capex, which is very important for inflation management, said CEA. Private sector investment is going up and should accelerate further, he added.

He also added that corporate tax rate has benefited a lot, many small size firms would have been in distress otherwise.

India's GDP growth slowed to 8.4 per cent in the second quarter of 2021-22, mainly due to waning low base effect, but the economy has surpassed the pre-COVID-19 level, official data showed on Tuesday.

The GDP growth in April-June quarter this fiscal stood at 20.1 per cent. The Indian economy had contracted by 24.4 per cent in April-June last year.

GDP had contracted by 7.4 per cent in the corresponding July-September quarter of 2020-21, according to data released by the National Statistical Office (NSO).

In value terms, the GDP stood at Rs 35,73,451 crore in July-September 2021-22, higher than the Rs 35,61,530 crore in the corresponding period of the 2019-20 financial year.

According to the NSO data, gross value added (GVA) growth in the manufacturing sector accelerated to 5.5 per cent in the second quarter of 2021-22, compared to a contraction 1.5 per cent a year ago.

Farm sector GVA growth was up at 4.5 per cent, compared to 3 per cent growth earlier.

Construction sector GVA grew by 7.5 per cent compared to a degrowth of 7.2 per cent earlier.

TAGS: