Indian economy is growing in double digits this fiscal year: CEA

KOLKATA: The Indian economy is expected to see double-digit growth in 2021-22 and between 6.5-7 percent in the next fiscal year, the outgoing chief economic advisor KV Subramanian said on Sunday. The CEA said it doesn’t expect commodity inflation to shorten the V-shaped recovery in the future.
“I assume that India will grow double-digit this year (FY22) and next year 6.5-7 percent and over seven percent and then a growth acceleration of over seven percent,” said Subramanian in an interview with PTI.
He was in town to receive the Indian Institute of Management-Calcutta’s Distinguished Alumnus Award.
India’s growth forecast had been limited to 8.7 to 9.4 percent by the IMF and other institutions.
Subramanian said that people often do not consider the effects of major reforms being carried out, even in 1991 reforms were carried out 99 percent of people did not understand the effects. “We have carried out breakthrough reforms that will have an impact in the future.”
He said inflation is 4.5 percent and global inflation is high as global politics have focused only on demand, as opposed to India’s politics which are clearly aimed at improving supply.
“If you focus on just increasing demand without measuring supply, it leads to inflation. Indian politics has shown a clear difference to global financial policy crisis when India only asked for side measures with no supply-side intervention, so we had double-digit inflation every month for a year and a half even though there was no lockdown and nightly curfew, “Subramanian said, attacking the then government.

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