Outgoing CEA sees double-digit GDP growth

Kolkata: Indian economy is expected to see a double-digit growth in 2021-22 and between 6.5-7 per cent in the next financial year, outgoing chief economic advisor (CEA) KV Subramanian said on Sunday.

The CEA said that he doesn't expect commodity inflation will taper the V-shaped recovery going forward. "I expect India to grow at double digit this year (FY22) and 6.5-7 per cent next year and over seven per cent and thereafter growth accelerating over seven per cent," Subramanian told PTI in a interview. He was in the city to receive the Distinguished Alumnus Award from the Indian Institute of Management-Calcutta.

India's growth projection had been capped between 8.7 per cent and 9.4 per cent by IMF and other institutions.

Subramanian said people often do not take into account the impact of substantial reforms that were done, even in 1991 reforms were done, 99 per cent people did not understand implications. "We have done seminal reforms actually which will be felt going forward."

He said inflation is 4.5 per cent and global inflation is high due to global policies that have only focused on demand in contrast to India's policies that are clearly focused on enhancing supply.

"When you focus on only enhancing demand without supply measures inflation is what results. Indian policy has shown clear difference with the global financial crisis when India did only demand side measures without supply side interventions that's why we had double digit inflation despite without lockdown and night curfews every month for one and half years," Subramanian said taking a dig at the then government.