India's economic growth may hit 7-7.5% in 2022-23: EAC-PM

22 Nov '21

1 min read

Pic: Andrii Yalanskyi | Dreamstime.com

Members of the Economic Advisory Council to the Prime Minister (EAC-PM) are optimistic about real and nominal growth prospects of India and feel that the real rate of growth may touch 7 to 7.5 per cent in 2022-23. Other than an element of the base effect, the contact intensive sectors and construction are expected to recover in 2022-23.

Once capacity utilisation improves, private investments should also recover. “However, this should not mean that the Union Budget for 2022-23 should project unrealistically high tax revenue or tax buoyancy numbers,” the EAC-PM members said in a media release.

The Union Budget for 2021-22 was applauded because of reform measures, as well as transparency and realism in the numbers. EAC-PM members are of the view that these dimensions should be carried forward into the 2022-23 Budget too, signalling use of the extra revenue in the form of capital expenditure and human capital expenditure, since COVID-19 has led to a human capital deficit.

“There should also be a clear road-map for privatisation and the growth orientation of last year’s Budget should also be maintained,” the release said.

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