India’s macroeconomic fundamentals are much stronger, and the country is all set for robust growth on the back of structural reforms, the government’s capex push and rapid vaccination, Chief Economic Advisor KC Subramanian said on Tuesday. Briefing media on the growth number, he said the GDP data for the first quarter reaffirms the government’s prediction of an imminent V-shaped recovery made last year.
India’s economic growth surged to 20.1 per cent in the April-June quarter of this fiscal, helped by a low base in the year-ago period, amid a devastating second wave of the COVID-19. The gross domestic product (GDP) had contracted by 24.4 per cent in the corresponding April-June quarter of 2020-21, according to data released by the National Statistical Office (NSO) on Tuesday.
On the inflation, he said it has witnessed a moderation in July compared to the previous month. “Our expectation is that the inflation in the next few months should be within that range, between 5-6 per cent, but less than 6 per cent” despite hardening global commodity prices, he said.