Former chief economic adviser Arvind Virmani stated on Tuesday that the Indian economy is expected to rise by 9.5 percent this fiscal year. Virmani, speaking at a virtual event hosted by industry association PHDCCI, said that while government spending and exports had peaked, private consumption has yet to recover as a result of the COVID-19 pandemic.
"Growth in the current fiscal year will be stronger, approaching 9.5 percent." And the average growth rate for this decade (FY21-FY30) will be 7.5 percent plus or minus 0.5 percent," he said.
According to latest government figures, the Indian economy is expected to grow at a rate of 9.2 percent in 2021-22, compared to a decrease of 7.3 percent in 2020-21. The Reserve Bank of India (RBI) has cut its growth forecast for this fiscal year to 9.5 percent, while the International Monetary Fund (IMF) predicts 9.5 percent growth in 2021 and 8.5 percent the next year.
India's GDP growth is now positive, according to the prominent economist, but job growth is lagging. Virmani asserted that the COVID-19 pandemic had hampered economic recovery and that tax reforms were needed. He said, the GST council appears to be focused on short-term income maximisation.