After the second wave of COVID-19 pandemic had hit the country hard, which led the Reserve Bank of India (RBI) reduce its gross domestic product (GDP) growth projection by one per cent in the current financial year, Rajiv Kumar, Vice-Chairman, NITI Aayog on Saturday said he is confident that every organisation will revise their growth projections to 10-10.5 per cent once they witness the growth rate by October.
“Everyone will revise their growth projections once our economy will start recovering. The recovery will start from June itself and will get pace from July. I am confident that everyone will revise their growth projections to 10 per cent-10.5 per cent once they see the growth of economy after October month,” said Rajiv Kumar in an exclusive interview to ANI.”
The RBI has cut the GDP growth forecast from 10.5 per cent to 9.5 per cent for the financial year 2021-22. Speaking to ANI, Rajiv Kumar said, “RBI has cuts GDP growth forecast for the financial year 2021-22 to 9.5 per cent from 10.5 per cent due to impact of the second wave, which is going to impact our economy in the first quarter. The economy will recover below than expected in the first quarter. Our economy will grow at a pace of 10 per cent-10.5 per cent in the financial year 2021-22.”
Rajiv Kumar is hopeful that pandemic will not have much impact on fiscal deficit and disinvestment targets. “Covid-19 has forced the government to invest more, spend more on public infrastructure, but it will not have much impact as we have seen our GST collection has increased. In the budget also our revenue target were kept very conservative.