At a virtual event organized by Dun and Bradstreet, Chief Economic Advisor Krishnamurthy Subramanian said that from fiscal 2023, the country's economy will witness a growth of 6.5-7 per cent, due to the various reforms taken by the government and the ongoing vaccination drive from fiscal 2023. The country's economy had contracted by 7.3 per cent in the 2020-21 fiscal. The impact of the second wave, however, shall not be very significant, he noted.
"Together with the reforms and focus on vaccination, I expect growth to start hitting close 6.5 to 7 per cent from FY23 onwards and accelerate from there on," Subramanian said. "Given the significant reforms that have been done over the last one and a half years, I have no hesitation in saying that I look forward to a decade of high growth for India."
The momentum of recovery witnessed in the fourth quarter of FY21 was impacted to a certain extent by the second wave, he noted. However, the economic impact created by the second way was relatively less than the first wave despite the increased devastation on the health front as economic restrictions were placed primarily at the state level, he said.
Various reforms undertaken by the government in agriculture, labour, export PLI scheme, change in MSME definition, creation of the bad bank, privatisation of public sector banks, among others, shall also facilitate growth, he added.