The government expects the economy to grow by 10.5 percent in the current financial year
Prime Minister Narendra Modi’s Economic Advisory Council expects the country’s growth rate to range between 7 per cent and 7.5 per cent in the next financial year and the next budget should have a clear roadmap for privatization of state-owned properties.
The government expects the economy to grow by 10.5 per cent in the current fiscal, after a record contraction of 7.3 per cent last year due to the COVID-19 pandemic.
The seven-member council said in a statement on Thursday that the contact-intensive sectors and construction should recover in the financial year 2022-23.
Recent economic indicators such as tax collections, export growth, retail sales and power demand point to a better-than-expected recovery, prompting some economists to revise India’s growth forecast upwards.
The Advisory Council cautioned that the country’s 2022/23 budget should not contain unrealistic revenue targets and should include a plan to spend any additional revenue to build wealth. Council members were of the view that additional revenue in the form of capital expenditure and human capital expenditure could be used as the pandemic has led to human capital deficit.
Last year, Finance Minister Nirmala Sitharaman announced plans to privatize several state-owned companies such as refiner Bharat Petroleum and Shipping Corporation of India. Recently, the government also announced the sale of national carrier Air India to the Tata Group.
“There should also be a clear roadmap for privatization and the development orientation of last year’s budget should also be maintained,” the council said in its meeting today.
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