Noted economist Ashima Goyal reposed confidence in India’s economy and said that the economy is ready for faster recovery from pandemic lows.
“Despite the Covid-19 severe shock, India’s macroeconomy is more healthy and ready for faster growth than it has been for a long time. That recovery from both the first and second waves was faster than expected points towards inherent strengths of the economy,” she said in an interview to PTI.
Several agencies have lowered India’s projected growth rate in the current fiscal due to the impact of the second coronavirus wave. The RBI estimates peg growth for FY22 at 9.5 per cent. The first quarter GDP data will be released on August 31.
NITI Aayog’s Rajiv Kumar also foresees a strong rebound on the back of rapid vaccinations, infrastructure push, improved agricultural output due to good monsoons.
Goyal also talked about government’s renewed infrastructure push having a positive impact on the economy.
Goyal, who is also a member of the Monetary Policy Committee (MPC) of the Reserve Bank, said that although many Indian start-ups are doing well but “we should not, however, expect the private infrastructure investment boom of the 2000s.”
“Portfolio inflows into India are not only due to the quantitative easing of rich countries’ central banks, they are also attracted by India’s growth prospects. All emerging markets do not get such inflows,” the eminent economist opined.