NITI Aayog: India on cusp of major economic recovery

New Delhi, April 3

India is on the cusp of a major economic recovery and talks of possible stagflation are “overhyped” as a strong economic foundation is being laid with the reforms carried out by the government over the past seven years, NITI Aayog Vice-Chairman Rajiv Kumar said on Sunday.

Notwithstanding economic uncertainties triggered by the Russia-Ukraine war that is also impacting global supply chains, Kumar asserted that it was quite clear from all accounts that India will remain the fastest growing economy in the world.

“Given all the reforms that we have done in the past seven years, and given that we are seeing the end of the Covid pandemic hopefully, and the 7.8% rate of growth that we will get this year (2022-23), a very strong foundation is now being laid for further rapid increase in economic growth in the coming years,” Kumar said.

Asia’s third-largest economy is projected to grow 8.9% in 2021-22, according to recent government data. The RBI has pegged the economic growth rate for 2022-23 at 7.8%.

“So, I think India is on the cusp of a major economic recovery and economic growth,” Kumar said even as he acknowledged that because of the Russia-Ukraine war, India’s GDP growth projection could be revised.

“But even then, India will remain the fastest growing economy and all the other economic parameters are actually quite within the range,” he said.

On rising inflation, the NITI Aayog Vice-Chairman said RBI is keeping a close watch as per its mandate.

“I am sure that the RBI is well in control of it (inflation) and will take the necessary steps if and when required,” he said. — PTI

Talk of possible stagflation hyped

Talks of possible stagflation are overhyped as a strong economic foundation is being laid with the reforms carried out by the government over the past seven years. — Rajiv Kumar, NITI Aayog vice-chief