Finmin sees more than full recovery in FY22

Structural

reforms, Aatmanirbhar Bharat Mission and budget measures will strengthen the fundamentals of the economy

NEW DELHI: Painting a rosy picture of the economy, the finance ministry's monthly report on Tuesday said growth and inflation outlook for 2021-22 portends more than full recovery, and that the country has become the COVID-19 vaccine hub of the world.

"The structural reforms and the policy push under the Aatmanirbhar Bharat Mission along with the slew of measures announced in the Union Budget 2021-22 towards achieving broadbased inclusive growth will strengthen the fundamentals of the economy and bring it back on to a strong and sustainable growth path in the year ahead," the ministry's Monthly Economic Report said.

Growth and inflation outlook in 2021-22, "portends more than full recovery", it added.

Indian economy is estimated to contract 7.7 per cent in the current financial year, mainly due to the coronavirus pandemic.

The latest Economic Survey projected growth rate to rebound to 11 per cent during 2012-22 while the Budget estimated real GDP to be between 10-10.5 per cent.

"FY 2021-22 will be the year to rebuild with the IMF projecting growth of output at 11.5 per cent, Economic Survey at 11 per cent and the RBI's Monetary Policy Committee at 10.5 per cent.

The Survey pitched for growth through counter cyclical fiscal policy emphasising that growth alone is the answer to sustaining the public debt burden of the country, the report said.