CEA Subramanian

The CEA said that he does not expect commodity inflation will taper the V-shaped recovery going forward.

Indian economy is expected to see double-digit growth in 2021-22 and between 6.5-7 percent in the next financial year, outgoing chief economic advisor K V Subramanian said on Sunday.

The CEA said that he does not expect commodity inflation will taper the V-shaped recovery going forward.

“I expect India to grow at double-digit this year (FY22) and 6.5-7 percent next year and over seven percent and thereafter growth accelerating over seven percent, Subramanian told PTI in an interview.

He was in the city to receive the Distinguished Alumnus Award from the Indian Institute of Management-Calcutta.

India’s growth projection had been capped between 8.7 percent and 9.4 percent by IMF and other institutions.

Subramanian said people often do not take into account the impact of substantial reforms that were done, even in 1991 reforms were done, 99 percent of people did not understand the implications. “We have done seminal reforms actually which will be felt going forward.”

He said inflation is 4.5 percent and global inflation is high due to global policies that have only focused on demand in contrast to India’s policies that are clearly focused on enhancing supply.

“When you focus on only enhancing demand without supply measures inflation is what results. Indian policy has shown a clear difference with the global financial crisis when India did only demand-side measures without supply-side interventions that’s why we had double-digit inflation despite without lockdown and night curfews every month for one and half years, Subramanian said taking a dig at the then government.

(PTI)