On Wednesday Former Chief Economic Advisor Arvind Virmani said, “that the Indian economy is expected to contract 7.5 percent in the current financial year, but will see double-digit growth in the year 2021-22”. Addressing a virtual event organized by industry body PHDCCI, Virmani said that the central government has come up with some notable reforms, including Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC) and Monetary Policy Committee (MPC) Includes installation.
The economic growth of the country needs to be accelerated again. The Indian economy is likely to contract by 7.5 percent in 2020-21. But it will increase in double digits in the next financial year.
Virmani also added that in 2009, he wrote that if India wants to continue economic growth, the pending reforms should continue, but his advice was not taken seriously.
Recently, Moody’s Investors Service revised its GDP forecast for India to a contraction of (-) 8.9 percent in 2020 as the economy re-emerges after a long and tight nationwide lockdown, but said that recovery is a little uneven.
The Reserve Bank of India has projected the Indian economy to contract at 9.5 percent in the current financial year, while the International Monetary Fund (IMF) and the World Bank have forecasted contractions of 10.3 percent and 9.6 percent respectively.
Virmani said that the increase in marginal income tax rates needs to be reversed. He also said that to reduce capital costs, India needed more financial sector reform. Our country needs an import substitution policy in China and a free trade policy in the rest of the world. According to Virmani India’s economic competitiveness needs to be increased so that protectionist policies need less and less.