New Delhi: (News in Detail) Indian economy is expected to grow at the rate of 10.5 percent or more in the current fiscal, Niti Aayog Vice Chairman Rajiv Kumar said on Thursday. He was speaking at a virtual conference of PAFI India. Kumar also said that the modernisation of the retail sector is very much on the cards. "India Purchasing Managers' Index (PMI) for both manufacturing and services have shown a very smart uptick last month. This (Indian economy) will strengthen even further," he said.

"I expect the Indian economy to grow 10.5 percent or higher in FY 22," he noted.

The country's economy grew by a record 20.1 percent in the April-June quarter, helped by a very weak base of last year and a sharp rebound in the manufacturing and services sectors in spite of the devastating second COVID wave.

The Reserve Bank of India (RBI) has lowered the growth projection for the current financial year to 9.5 percent from 10.5 percent estimated earlier while the IMF has projected a growth of 9.5 per cent in 2021 and 8.5 per cent in the next year.

Replying to a question, Kumar said reasons for the slump in two-wheeler sales might be due to the transition from internal combustion engine scooters and bikes to electric bikes and scooters.

Noting that exports create jobs, Niti Aayog VC said, "we need to double our share of global trade and for that, we might need better market access."

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