India to achieve double-digit growth in FY22 on policy initiatives, continuing reforms: CEA

Chief Economic Adviser (CEA) K V Subramanian has exuded confidence that India would achieve double-digit growth in the current financial year (FY22) on the back of policy initiatives and continuing reforms. He also said the country is well poised to meet the fiscal deficit target of 6.8 per cent of Gross domestic product (GDP).  The overall growth for the first half has been 13.7 per cent, so even a little more than 6 per cent growth in the subsequent quarters should be able to deliver double-digit growth for this year.'

With regard to the impact of the new coronavirus variant Omicron, Subramanian said the impact would be less than the first wave as the government already has experience of handling two waves of the pandemic. He said ‘given that we are still amidst pandemic and the Omicron variant seems to have actually created some concern, we are all waiting for evidence to come on how infectious would it be, and how debilitating would it be as well compared to the Delta variant.’

Talking about the impact of repeal of three farm laws on the reforms process, the CEA said it should not affect reforms in other sectors. He said ‘In a democracy like ours, political economy matters a lot and I think it is a fact that the way agriculture generates emotion other sectors do not. Therefore, extrapolating anything that you are seeing in agriculture, be it reforms or otherwise, on to other sectors...I would not recommend, because the dynamics are quite different’ .