Indian economy recovering faster than expected; need to keep growth momentum: Sanjeev Sanyal
Principal economic advisor to the finance ministry Sanjeev Sanyal has said that Indian economy is recovering much faster than expected and the government will spend on building infrastructure rather than boosting consumer demand artificially. He also said the country needs to keep the growth momentum and it is the only means to create employment and reduce poverty.
Sanyal has stated that the nominal GDP growth rate in the Union Budget for 2021-22 was projected at around 14 percent, which is a ‘conservative estimate’. He noted that the government is unapologetic about the privatisation of some public sector entities. He said PSUs will exist where it is needed but not where the private sector can do a better job. He also said that there is a need to unleash the spirit of the private sector. He added ‘we will get rid of regulations but will support sectors which needed by extending the PLI (production linked incentive) schemes.’
The data released by the National Statistical Office (NSO) showed after contracting for two quarters in a row, the country's economy grew by 0.4 per cent in the October-December quarter of the current fiscal amid the coronavirus pandemic. The gross domestic product (GDP) had expanded by 3.3 percent in the corresponding period of 2019-20. The economy had shrunk by an unprecedented 24.4 per cent in the first quarter this fiscal following the coronavirus pandemic and resultant lockdowns.
