Former NITI Aayog vice-chairman Arvind Panagariya on Tuesday said the Indian economy has recovered “to a large extent” from the disruptions caused by the pandemic and expressed hope that the recovery will continue and grow at 7-8 per cent. Then it will be restored.
Panagariya suggested that the government should now indicate to reduce the fiscal deficit by half to one per cent in the fiscal year 2022-23.
The eminent economist told PTI in an interview, “The Indian economy has recovered substantially to return to pre-Covid GDP levels… only private consumption is still at its pre-Covid-19 levels.” below.”
According to the estimates of the Ministry of Statistics and Program Implementation, India’s GDP growth rate will be 9.2 percent in 2021-22. Panagariya said that this figure is higher than any other country and the revival has taken place across the country.
The Indian economy had contracted by 7.3 percent during the last financial year.
Panagariya said that once the epidemic is brought under control due to vaccination, the revival will continue and the period of 7-8 per cent growth will return.
Panagariya, who is currently a professor of economics at Columbia University, said the government should now focus on reducing the fiscal deficit, as failing to do so would create a huge debt burden for the next generation.