India on cusp of major economic recovery; talks of stagflation overhyped: Niti Aayog VC Rajiv Kumar

On rising inflation, the Niti Aayog Vice-Chairman Rajiv Kumar says that the RBI is keeping a close watch as per its mandate

India is on the cusp of a major economic recovery and talks of possible stagflation are “overhyped” as a strong economic foundation is being laid with the reforms carried out by the government over the last seven years, Niti Aayog Vice Chairman Rajiv Kumar said on April 3.

Notwithstanding economic uncertainties triggered by the Russia-Ukraine war that is also impacting global supply chains, Mr. Kumar asserted that it was quite clear from all accounts that India will remain the fastest growing economy in the world.

“Given all the reforms that we have done in the last seven years, and given that we are seeing the end of the COVID-19 pandemic hopefully, and the 7.8% rate of growth that we will get this year (2022-23), a very strong foundation is now being laid for further rapid increase in economic growth in the coming years,” Mr. Kumar told PTI in an interview.

Asia’s third-largest economy is projected to grow 8.9% in 2021-22, according to recent government data. The Reserve Bank of India (RBI) has pegged the economic growth rate for 2022-23 at 7.8%.

“So, I think India is on the cusp of a major economic recovery and economic growth,” Mr. Kumar said even as he acknowledged that because of the Russia-Ukraine war, India’s GDP growth projection could be revised.

“But even then, India will remain the fastest growing economy and all the other economic parameters are actually quite within the range,” he said.

Russia started its military offensive against Ukraine on February 24. Western nations, including the U.S., have imposed major economic and various other sanctions on Russia following the offensive.