Sustaining the nascent economic recovery - The Hindu BusinessLine thehindubusinessline.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thehindubusinessline.com Daily Mail and Mail on Sunday newspapers.
Blind optimism on GDP growth × The projected 10.5% GDP growth for this year seems far-fetched, as the Covid second wave is bound hit the economy hard The severity, penetration and pervasiveness of the second wave of the Covid pandemic the raises new questions on the optimism of the authorities in India as also of the multilateral institutions like the IMF and ADB on growth revival, particularly the projection of a 10.5 per cent increase in real GDP in 2021-22 over the previous year. It is easy to see how and why this is not achievable, for certain. A growth of 10.5 per cent means the India’s real GDP must grow from ₹134,08,882 crore (official 2020-21 figure) to ₹148,16, 815 crore, an increase of around ₹14-lakh crore. We have not achieved this in the best of times. To say we will do it now is but blind optimism that hinders rather than helps any analysis that must guide policy in these difficult times.