The Indian economy is poised to recover and should reach the pre-COVID levels by the third quarter (October-December) this year, said Sanjeev Sanyal, Principal Economic Advisor to the Ministry of Finance, on Friday (September 3).
Sanyal said that demand is improving, but exports have done exceedingly well. “We have seen 45 per cent year on year growth in August in merchandise exports and services exports are doing quite well. Indian economy will reach pre-COVID-19 levels by the third quarter of October to December 2021, assuming we do not get hit by a third wave,” Sanyal told news agency ANI.
Recent government data says that India’s GDP grew by 20.1 per cent in the April to June quarter (Q1 FY22) as compared to the contraction of 24.4 per cent in Q1 FY21.
Sanyal said the Indian economy has the momentum now, backed by record exports and foreign direct investment.
The Principal Economic Advisor said that double-digit growth is possible “if there is no major shock (third wave)”.
Sanyal refused to comment on the rally in the stock market, but expressed faith in the strength of capital markets. “It means that both domestic and foreign investors are beginning to appreciate the major reforms we have done in many years,” he said.
Sanyal said the government is paying special attention to sectors worst hit by the pandemic — tourism and entertainment.