New Delhi: India’s GDP growth rate for the year 2021-22 will be 9.5 per cent, according to Arvind Virmani, Former Chief Economic Advisor (CEA) of India. According to Virmani, the exports, as well as government expenditure, have peaked but the private consumption is still weak and has not recovered after the Covid-19 pandemic.Also Read – India’s GDP Contraction Shrinks to 7.5%, Chief Economic Adviser Says ‘Encouraging’
Addressing a virtual event, Virmani said, “The current financial year’s growth will be higher and close to 9.5 per cent. And this decade’s (FY21-FY30) average growth will be 7.5 per cent plus minus 0.5 per cent.” Also Read – Banking Sector Woes Impacting Growth: CEA Subramanian
However, the government has something else to say. According to the government data, India’s GDP growth rate for FY 21-22 will be 9.2 per cent. In 2020-21, the economy saw an overall contraction of 7.3 per cent. Also Read – Economic Survey 2020: Theme, Colour, Significance | All You Need to Know
The Reserve Bank of India (RBI) and the International Monetary Fund (IMF) , too, have projected India’s GDP growth rate at 9.5 per cent.
According to Virmani, it is the MSME sector that is crucial for the inclusive growth of the economy. A modern MSME, according to Virmani, should have equal opportunity to compete with the corporate sector.
He also noted that although India’s GDP growth is positive, the employment opportunities are still lagging.
(With inputs from PTI)
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