India projects 11% growth for next fiscal year

NEW DELHI

The Indian government on Friday projected that the economy could grow at 11% during the next fiscal year and can contract by 7.7 % during the current fiscal year ending on March 31.

“India’s real GDP to record 11.0% growth in FY 2021-22 and nominal GDP to grow by 15.4% – the highest since independence,” said the Economic Survey submitted in the parliament by Finance Minister Nirmala Sitharaman.

“India focused on saving lives and livelihoods by its willingness to take short-term pain for long-term gain, at the onset of the COVID-19 pandemic. GDP growth will recover from the temporary shock caused by the pandemic,” said the survey.

“An early, intense lockdown provided a win-win strategy to save lives, and preserve livelihoods via economic recovery in the medium to long-term,” it said.

The Finance Ministry presents the Economic Survey in the parliament every year a day or two before the national budget. The survey projects the state of health of the Indian economy and outlines the challenges.

The survey also said India expected to have a Current Account Surplus of 2% of GDP in FY 21, a historic high after 17 years.

“India is set to become the fastest growing economy in next two years as per International Monitory Fund (IMF),” said the survey.

“India remained a preferred investment destination in FY 2020-21 with FDI [Foreign Direct Investment] pouring in amidst global asset shifts towards equities and prospects of quicker recovery in emerging economies,” the survey added.

Chief Economic Advisor Krishnamurthy Subramanian, while speaking about COVID-19 policy response, said: “The policy response which India came up with, was a mature and farsighted one.”

“India undertook short-term pain to get long-term gain. The 'V-shaped recovery' makes India a sui generis case in mature policy making," he added.​​​​​​​