New Delhi, NFApost: Niti Aayog Vice Chairman Rajiv Kumar said that India is on the cusp of a major economic recovery and talks of possible stagflation are overhyped as a strong economic foundation is being laid with the reforms carried out by the government over the last seven years.
Regarding concerns over possible risk of stagflation, Kumar said the Indian economy is projected to grow 7.8% in the current fiscal and this is nowhere near the definition of stagflation.
Although the economic uncertainties triggered by the Russia-Ukraine war also impacting global supply chains, Kumar asserted that it was quite clear from all accounts that India will remain the fastest growing economy in the world.
“Given all the reforms that we have done in the last seven years, and given that we are seeing the end of the COVID-19 pandemic hopefully, and the 7.8% rate of growth that we will get this year (2022-23), a very strong foundation is now being laid for further rapid increase in economic growth in the coming years. So, I think India is on the cusp of a major economic recovery and economic growth,” said Niti Aayog Vice Chairman Rajiv Kumar.
On rising inflation, the Niti Aayog Vice Chairman said that RBI is keeping a close watch as per its mandate.
“I am sure that the RBI is well in control of it (inflation) and will take the necessary steps if and when required,” said Niti Aayog Vice Chairman Rajiv Kumar.
Retail inflation hit an eight-month high of 6.07% in February, remaining above the RBI’s comfort level for the second month in a row while wholesale price-based inflation soared to 13.11 percent on account of hardening of crude oil and non-food item prices.