India will see close to double-digit economic growth this financial year (FY22): Nirmala Sitharaman

India will see close to double-digit economic growth this financial year (FY22), the highest among leading economies of the world.

October 14, 2021

India will see close to double-digit economic growth this financial year (FY22), the highest among leading economies of the world, according to Finance Minister Nirmala Sitharaman.

Growth would be sustained over the next decade given the rate at which core industries and services are growing in the country, she added.

Institutions such as the International Monetary Fund and the Reserve Bank of India have projected a 9.5 per cent growth for India in FY22.

Growth reset in India post-pandemic will be different from pre-pandemic. India has a huge captive market and people investing in India will benefit from it, Sitharaman explained.

India’s Finance Minister Smt Nirmala Sitharaman has stated that India will see close to double-digit economic growth this financial year (FY22), the highest among leading economies of the world.

Sitharaman added that the economy is expected to grow at 7.5-8.5 per cent — as projected by rating agencies — in the next financial year and the growth would sustain at this range for the next decade. According to her, growth would be sustained over the next decade given the rate in which core industries and services are growing. The minister was delivering a talk at the Harvard Kennedy School.

Institutions such as the International Monetary Fund and the Reserve Bank of India have projected a 9.5 per cent growth for India in FY22.

Sitharaman went on to explain that the growth of any economy post-pandemic cannot be compared to pre-pandemic levels. The coronavirus pandemic has resulted in a complete reset across the world and countries will be planning their growth very differently to what it was before. In the case of India, the country has a huge market that is captive in nature. People who are moving out of other countries to invest in India and produce in India will benefit from the country’s captive market. 

India’s demographic dividend has great purchasing power ability, she was quoted as saying in Business Standard. The middle class in India has money to buy things and people who are moving from other destinations to invest in India and to produce in India will have a captive market.

Sitharaman also added that there needs to be reforms in institutions such as United Nations, World Bank and International Monetary Fund (IMF) as they are unable to speak on behalf of countries whose issues have been unaddressed for decades.