On Tuesday, Chief Economic Adviser (CEA) K V Subramanian expressed optimism that India would attain double-digit growth this fiscal year as a result of policy measures and ongoing reforms. He also stated that the government is on track to reach its budget deficit target of 6.8% of GDP.
For the current fiscal year, which ends on March 31, 2022, the government expects a fiscal deficit of 6.8%
of GDP.
According to official figures released on Tuesday, India's GDP growth in the second quarter of 2021-22 was 8.4%, surpassing the pre-COVID level. According to the Economic Survey 2020-21, which was released in January this year, GDP growth for the current fiscal year ending March 2022 is expected to be 11%.
The supply-side stimulus from reforms and regulatory ease, infrastructural investments, a boost to the manufacturing sector through Production-Linked Incentive (PLI) schemes, recovery of pent-up demand, increase in discretionary consumption following vaccine rollout, and a pick-up in credit will all contribute to growth.
"We expect growth of 6.5-7 percent next year and then 7% or more in the following years, depending on the scenario. I believe that the impact of seminal second-generation reforms will be felt in the future in terms of both investment and productivity," said the CEA. Moreover, it is too early to speculate on the impact of the novel coronavirus strain Omicron, he added.