India's economy is moving towards a higher growth trajectory and is likely to grow at about 10% in 2021-22, Economic Advisory Council to the Prime Minister (EAC-PM) Chairman Bibek Debroy said on Wednesday.
“I am confident we are on a path towards a higher growth trajectory, higher poverty reduction, higher employment, and a prosperous, more developed and better governed India,” Mr. Debroy said at an SBI event.
At the beginning of FY22, forecasts for real growth were in the 8.5-12.5% range, he noted. However, high-frequency indicators including GST revenue, e-way bills, power consumption, vehicle registrations, railway freight, corporate profitability, foreign direct investment inflows and steel consumption had instilled confidence that the real rate of growth would be about 10% this fiscal, he said. For FY23, he expects growth to be in the 6-7.5% range.
He pointed out that with improvement in capacity utilisation, investments were also going to pick up in another six months.