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BUSINESS EYE NOVEMBER 19, 2021 | The Indian Eye 36

all economic indicators point to a strong

bounce back, says government

Indian economy is expected to grow beyond 10% in this fiscal, but inflation is emerging as a key risk

OuR BuREAu

New Delhi/Mumbai
ndia is bouncing back. The worst
phase of the economy, as per the
igovernment estimates, is over.
On Thursday, commerce and indus-
try minister Piyush Goyal said that
economic indicators were pointing to
a bounce back, while underlining the
country’s commitment to multilateral
trade rules.
At a business summit, Goyal also
said that India is looking at recipro-
cal and equitable access for its goods
through free trade agreements, while
seeking to ensure that it also got a
good deal on the services front. The
minister, who is leading the negoti-
ations with a host of countries from
Canada and the EU to the UK, UAE
and Australia, also said some of the
trade treaties signed in the past were
not balanced, resulting in a massive
trade deficit.
Asked about India’s trade with
China, Goyal said the country’s ex-
ports are growing to every part of the
world and, as commodity prices are union Minister of Commerce and Industry Piyush Goyal addresses the Global Services Conclave in New Delhi (ANI)
ruling high in the global markets, “we
do expect imports also to grow”. He, India’s real GDP growth in FY22 to despite constraints in shipping and “The current world order has
however, added that a large part of exceed 10% supported by a record logistics, Kumar said. “Inflation is been substantially altered and this
India’s imports are products, which kharif crop and bright rabi prospects. emerging as a key risk to sustainable is bound to give rise to a new post-
either it does not produce sufficiently This will boost rural income and con- global economic recovery with supply COVID dispensation. In this state
or have a requirement for them as a sumption,” he said. chain constraints and rising energy of flux, space has been created for
raw material or for re-processing for According to Kumar, significant prices,” he added. aspiring and emerging powers to take
export purposes. increase in exports will also boost The International Monetary center stage and help shape a new
“All imports are not necessarily economic growth and employment Fund has projected the global to grow world with a better future for all,” the
bad. But one has to strengthen In- generation while the gradual pickup at 5.9% in 2021 with the real GDP of report adds.
dia’s domestic capabilities,” the min- in contact-intensive services sector is advanced economies projected to “Indeed, rays of recovery are be-
ister added. He also said that the gov- further likely to support the growth expand by 5.2% whereas emerging ginning to emerge in our economies.
ernment remained open to talks with momentum. market and developing economies The International Monetary Fund
farmer unions who were protesting “The rapid vaccination drive are expected to grow more. (IMF) projects that the global econo-
over three laws and maintained any across the country will ensure that According to World Economic my will grow by 6% in 2021, and fore-
resolution is not linked to assembly the risk of future waves is minimized,” Forum, despite the economic dev- casts 9.5% growth in the Indian econ-
elections in Uttar Pradesh. he hoped. astation caused by the virus, India’s omy. At the same time, the world is
In a related development, NITI Kumar further said that the agile response has been commend- seeing exponential growth in digital
Aayog vice-chairman Rajiv Kumar trade growth in India is rebounding able, especially as the country rallied services and infrastructure, from the
said the Indian economy is expect- strongly, with much stronger imports to manage a deadly second wave of adoption of large-scale work-from-
ed to grow beyond 10% in this fiscal, than exports, reflecting India’s robust the virus early in 2021. “India was home arrangements to the use of
supported by a record kharif crop, economic recovery. “Higher than ex- the first country to feel the impact of cloud services and videoconferenc-
bright rabi prospects and strong re- pected revenue trends driven by both the virulent Delta variant but quickly ing,” the Forum report said.
bound in trade. However, inflation is direct and indirect taxes have provid- swung into action to ensure that as These are definitely hopeful signs
emerging as a key risk to sustainable ed the much-needed fiscal space for many people as possible were vacci- for Indian economy. But the coming
global economic recovery with supply required policy action,”. nated. One billion doses of the vac- months are crucial as the virus is still
chain constraints and rising energy Globally too, trade is rebounding cine have already been administered,” in circulation and India is far from
prices, Kumar cautioned. “We expect faster than global economic growth says a Forum report. vaccinating its entire population.

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