Indian economy will have double digit growth in 2021-22, says Niti Aayog vice-chairman: Report

According to media reports, Kumar also said that the country is better prepared in case there is another Covid wave as the states have learnt their lessons from the past two instances.

He said the economy will pick up in the second half of this fiscal year as the county is gradually recovering from the Covid situation, citing the various indicators that he has seen, including the mobility indicator.

Referring to the GDP estimates that were revised by various organisations and agencies as the second wave of Covid hit the Indian economy, Kumar said that the figures will have to be revised once again as the economic activities will soon pick up pace.

India's GDP growth this fiscal would be in double digits, he expects, the report said.

RBI has pegged the growth figure for the current financial year at 9.5 per cent, keeping in view the possibility of a strong rebound.

Fitch Ratings slashed the projection to 10 per cent against 12 per cent estimated earlier, while S&P  Global Ratings has cut India's growth forecast to 9.5 per cent from 11 per cent earlier.

He said the private investment in capacity expansion in sectors like steel, cement and real estate was already happening, adding that full fledged private investment recovery can be expected by the third quarter of this(fiscal).

The recovery in the consumer sector will pick up gradually as the consumers are likely to be hesitant in spending on account of the Covid-19 pandemic, he noted.

He felt that the impact of the third wave of Covid, if at all it comes up, will be far less as the government is better equipped to deal with it.

Last week, the Centre announced an additional Rs 23,123 crore funding, mainly aimed at ramping up health infrastructure.

In this context, the Government think tank's vice-chairman said that the preparations by the government is very significant and the states have also learnt their lessons after facing to Covid waves.

Despite the unprecedented health emergency which almost paralysed the Indian economy, the markets have remained buoyant as they touched new heights, he said, adding that this sentiment will not only continue but strengthen in the future.

With respect to FDI, he said a new record both for 2020-21 and between April to June in 2021-22 has been created.

He said the disinvestment environment looks better and expressed hope that the disinvestment target would be finally realised.

The government has set up a disinvestment target of Rs 1.75 lakh crore from stake sales in sales in public sector companies and financial institutions. Achieving this target will be crucial for the government finances which have shrunk due to Covid-19 pandemic and resultant increase in expenses.