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Former Niti Aayog vice-chairman Arvind Panagariya has said the fundamentals of the Indian economy are sound as the real GDP in Q3 and Q4 of FY'21 already crossed the pre-pandemic level. Panagariya however also emphasised that the country needs to conquer Covid-19 as quickly and decisively as possible.

He said ‘Here the news on vaccination front is excellent. I only wish that we as citizens do our bit and religiously wear masks when coming in contact with others.’ Meanwhile, the Indian economy grew by a record 20.1 per cent in the April-June quarter this fiscal, helped by a very weak base of last year and a sharp rebound in the manufacturing and services sectors in spite of a devastating second wave of Covid-19.

He pointed out that contrary to the general impression, private investment in India has certainly already picked up. He said ‘In both Q3 and Q4 of FY21, Gross Fixed Capital Formation (GFCF) at 33 per cent and 34.3 per cent of GDP, respectively, was higher than in the corresponding (pre-Covid-19) quarters a year earlier.’