Rajiv Kumar, the vice-chairman of the NITI Aayog, said on Sunday that India is on the cusp of a major economic recovery. He said talks of possible stagflation are overhyped as a strong economic foundation is being laid with the reforms carried out by the govt over the last 7 years.

"India will continue to be the world's fastest-growing economy, and all other economic indices are actually pretty within range," Kumar said. "Given all of the reforms we've implemented over the last seven years, and given that we're hopefully nearing the end of the COVID-19 pandemic, as well as the 7.8 percent growth rate we'll see this year (2022-23), a very strong foundation is now being laid for even faster economic growth in the years ahead."  "I am certain that the Reserve Bank of India has a firm grip on the situation (inflation) and will take appropriate action if and when necessary." He said that the administration has taken initiatives in the past to lower the tax burden. "And I believe it is now time for the states to step up if they believe this is necessary," Kumar added.

On Sunday, the latest FICCI Economic Outlook Survey forecasted annual median GDP growth of 7.4 percent for 2022-23, with a minimum and highest growth projection of 6.0 percent and 7.8 percent, respectively.

RBI may keep rates the same but shift its approach

India, Australia trade pact to strengthen Engg goods exports

India's foreign reserve being dragged down by rising dollar strength