As economic growth in the September quarter of the current fiscal stood at 8.4%, chief economic adviser KV Subramanian on Tuesday said the country would record double-digit growth in 2021-22. .
The double-digit growth rate will be driven by growing demand and a robust banking sector, he added.
Mr. Subramanian also said that nominally second-generation reforms would help the country grow more than 7% this decade.
The Treasury also said in a series of tweets that the economy is likely to grow by double digits between 2021-22.
✅ India is likely to grow double digit in fiscal year 21-22
India’s policy focuses on both Supply and Demand to ensure inflation control. In contrast, after the GFC, inflation ran away due to the policy focusing on demand (1/6) pic.twitter.com/Flg7Ml7PXU
– Ministry of Finance (@FinMinIndia) November 30, 2021
Regarding the fiscal deficit, the chief economic adviser thinks the budget estimate is likely to be met.
The government estimates the fiscal deficit at 6.8% of gross domestic product (GDP) for the current financial year ending March 31, 2022.
Meanwhile, the fiscal deficit for April-October 2021 stood at 36% of the 2021-22 budget estimate, according to official data released earlier in the day.
Mr. Subramanian’s comments come at a time when S&P Global Ratings has kept its growth forecast for India unchanged at 9.5% for the current fiscal.
Additionally, while September quarter growth came in at 8.4%, it was much lower than the 20.1% growth seen in the June 2021-22 quarter.