FICCI estimates that by the end of the current financial year, the Indian economy will be worth three trillion dollars. RBI has projected economic growth to be 9.5 percent in the year 2021-22.
Government should increase expenditure for growth: Industry
Newly-elected president of industry body FICCI Sanjiv Mehta said on Tuesday that India needs to focus on ease of doing business, consistency in tax policy and low cost of capital to sustain the growth rate of over eight per cent in the long term. At the same time, he said that at present private investment is sluggish, so the government should increase expenditure.
‘Efforts will have to be made for 8 percent growth rate’
Mehta said on Tuesday that India needs to focus on ease of doing business, consistency in tax policy and low cost of capital to sustain growth rate above 8 per cent in the long term. Mehta also stressed the need for sustained efforts to encourage private investment to sustain high economic growth over a long period of time. In the same month, Mehta, who was elected as the new chairman of FICCI, said that by the end of the current financial year, the Indian economy will be worth three trillion dollars. He said in a discussion, ‘We need to maintain the high growth rate for a long period. In this financial year, the growth rate is expected to be more than nine per cent, but maintaining it above eight per cent will be a challenge. is a positive sign. But private investment has not yet gained momentum, so the government needs to invest more money in the economy. He said that the cost of capital provided to the private sector also needs to be reduced. He said that the interest rate in India is much higher as compared to the competing countries. When asked about the possible impact of the new form of corona virus, Omicron, on economic activity, the FICCI President said that its spread is a matter of concern and it can be combated only with early vaccination. He said that the government should speed up the vaccination campaign.
Economy expected to grow further
The Reserve Bank of India has projected economic growth to be 9.5 percent in the year 2021-22. According to the Reserve Bank, GDP growth can be 6.6 percent in the third quarter of this financial year. At the same time, the economy can grow at a pace of 6 percent in the fourth quarter. At the same time, the growth in the first quarter of the next financial year can be 17.2 percent and in the second quarter the growth can be 7.8 percent. At the same time, Bank of America has given an estimate of 9.3 percent growth. ADB has retained India’s growth forecast for fiscal year 2022-23 at 7.5 per cent with domestic demand expected to return to normal levels. At the same time, Fitch has increased its growth forecast for the year 2022-23 from 10 percent to 10.3 percent.