Indian economy recovers 'handsomely' from pandemic-induced disruptions: Arvind Panagariya
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Former Niti Aayog Vice-Chairman Arvind Panagariya has said that the Indian economy has recovered 'handsomely' from the pandemic-induced disruptions and expressed hope that the recovery will be sustained and the growth rate of 7 to 8 percent will be restored.
Panagariya suggested that the government must now signal its intention to wind down the fiscal deficit by cutting it by a half-to-one percentage point in 2022-23. He said due to the COVID-19 pandemic, the fiscal deficit ballooned to 9.5 percent in the first pandemic year 2020-21. He added that the government aims to achieve a fiscal deficit of 6.8 percent of the gross domestic product (GDP) in the current financial year (2021-22).
Former Niti Aayog Vice-Chairman further stated that the dominant view among epidemiologists now is that with a large proportion of the population now having antibodies due to past infections from different variants of the virus or vaccination, there is now a high chance that the epidemic is about to enter the endemic phase. On rising inflationary trends, he observed that inflation is a concern in the United States, where it has reached 7 percent, the highest in the last 40 years, but not in India. In India, he pointed out that it has remained within the target range of 2 to 6 percent.
