GDP growth may rebound to 5% in FY22: Former RBI governor

The economy, which is likely to contract by 5 per cent in the current fiscal year, may expand by around 5 per cent in the next financial year, former RBI governor Duvvuri Subbarao said.

Rating agency Crisil on Tuesday had said the economy may shrink by 5 per cent in fiscal year 2021.

“I do believe that getting up to 5 per cent next year (FY22) is quite probable. The reason I say that is because this (Covid-19) is not a natural disaster. Our factories are still standing, our infrastructure and transport systems are still there,” Subbarao said.

He was speaking at a webinar on ‘Indian Economy -- Navigating through a Crisis’, organised by the Centre for Financial Studies (CFS) at Bhavan’s SPJIMR business school.

Speaking at the webinar, former deputy chairman of the erstwhile Planning Commission, Montek Singh Ahluwalia, also said there is a possibility of 5-6 per cent growth in fiscal 2021-22.