New Delhi: India's macroeconomic fundamentals are much stronger, and the country is all set for robust growth on the back of structural reforms, the government's Capex push and rapid vaccination, Chief Economic Advisor KC Subramanian said on Tuesday. Speaking to media on the growth number, he said the GDP data for the first quarter reaffirms the government's prediction of an imminent V-shaped recovery made last year.
India's economic growth surged to 20.1 percent in the April-June quarter of this fiscal, helped by a low base in the year-ago period, amid a devastating second wave of the COVID-19.
The gross domestic product (GDP) had contracted by 24.4 percent in the corresponding April-June quarter of 2020-21, according to data released by the National Statistical Office (NSO) on Tuesday. However, the main opposition Congress has cautioned against celebrating the growth numbers. "The surge in India's economic growth is helped by a low base of the year-ago period and that the economy is still some distance away from the pre-pandemic level," former Finance Minister and Congress MP P. Chidambaram said on Tuesday.
On the inflation, the CEA said that it has witnessed a moderation in July compared to the previous month.
"Our expectation is that the inflation in the next few months should be within that range, between 5-6 percent, but less than 6 percent" despite hardening global commodity prices, he said.