India to grow 10% this year, says NCAER

The Indian economy is expected to grow around 10 per cent during the current financial year on the likelihood of fewer Covid linked supply disruptions and buoyancy in the global economy, said Poonam Gupta, director general of economic think-tank NCAER.

The real challenge, however, would be to sustain a growth rate of 7-8 per cent in years to come, she said.

“We could see annual growth in the ballpark range of about 10 per cent. The reasons for this perceived optimism are: fewer supply disruptions; increased pent-up demand in the traditional and contactintensive services; and a buoyant global economy.”

“Even so, if two pandemic years are taken together, there would be a very small net growth. In other words, the economy at the end of 2021-22 would be only slightly larger than at the end of 2019-20,” Gupta said. GDP had contracted by 24.4 per cent in the corresponding April-june quarter of 2020-21.