Akshata Sharma
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"The Indian economy will grow around 7% in the current fiscal year and is on track to maintain a similar growth rate for several years," NITI Aayog member Arvind Virmani.
In a recent interview with PTI, Virmani said that the country is facing new challenges and will have to deal with them.
Last month, RBI pegged the FY25 gross domestic product (GDP) growth rate at 7.2%.
Explaining further, Virmani said it is like what he calls a double drought situation.
“We also had, of course, El Nino last year, but what the pandemic did was that it resulted in people having to draw down their savings… So, the obvious reaction is to rebuild your savings, which tend to reduce current consumption,” he noted.
“If people were buying branded goods, they will buy less branded or ordinary goods and save part of that money,” he said, highlighting a shift in consumer behavior.
Regarding privatization challenges in coalition-led states, Virmani cited historical precedents but expressed optimism. “I see no reason why privatization cannot proceed in these states,” he stated, noting recent political developments.
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