Mumbai: The State Economy will begin witnessing a growth of 6.5 to 7 percent of the 2023 fiscal and so on, assisted by various reforms carried out by the government so far and also as a driver of Covid-19 vaccination continues, the Economic Advisor (CEA) Krishnamurthy Subrousaries.
He said the second wave of Covid-19 could not have a very significant economy.
The country’s economy was contracted by 7.3 percent in fiscal 2020-21.
“Together with reform and focus on vaccinations, I hope growth began to close 6.5 to 7 percent of FY23 and so on and accelerate from there,” Subramanian said on a virtual event organized by Dun & Bradstreet.
“Given the significant reforms that have been made for the past half a year, I have no doubt saying that I look forward to a decade of high growth for India.” He said the momentum in the recovery seen in the fourth quarter of FY21 and as a whole in the second half of FY21 was affected by a certain extent by the second wave of Covid-19.
While the second wave is quite awesome on the health side, the economic impact of which has been limited because the second way is much shorter in its duration compared to the first wave and economic restrictions placed especially at the state level, he said.
“We expect the second wave effect not too big,” he said.
Subramanian said supply side reform carried out by the government in sectors such as agriculture, labor, exports of the PLI scheme, changes in the definition of MSMEs, the creation of poor banks, the privatization of public sector banks, among others, will encourage future growth.
He said the vaccination was important for the country to recover from a pandemic and to change Covid-19 to an ordinary flu effectively and reduce its impact significantly.
When overcoming the previous event, the economic council for the Chairperson of the Prime Minister (EAC-PM) Bibek Debroy said the GDP growth rate was a function of what the base last year.
“Because the base in 2021 fell 7 and some percentage of decimal points, in accordance with growth (real level) at 2021-22, because basically low, it would be high,” he said.
He expects a real growth rate of around 10 percent during the current financial year.
Debroy said the pandemic has resulted in covering economic development for two years.
“So it’s not just a target of $ 5 trillion dollars (the economy in 2024-25) moves away, but also the fact that maturing on the target of 2030 sdgs (sustainable development goals) for India will be a little more difficult.
According to him the indicator that appears so far shows that results show that The company’s profitability is quite good.
He said that despite good company profitability, employment in urban areas has not increased.
“One of the alarming signs today is, even though I say the corporate sector seems fine, there are no signs of fear which is increasing in urban areas, so far.
This is really a function of what has happened to companies that are not included and I think of MSMEs, “Debroy added.