New Delhi: Aditya Birla Group Chairman Kumar Mangalam Birla said that there may be some reassessment of India’s economic growth rate in the current financial year due to the deadly second wave of COVID-19, but the long-term prospects for the country remain strong.
In the latest annual report of group company UltraTech Cement Ltd, Birla also said that the good thing is that the disruptions in the production and supply chain were less severe during the second wave of the pandemic as compared to the first wave. Apart from this, the level of traffic and related economic activities will help in normalizing rapidly with the increase in vaccination, he said.
While the government sticks to its forecast of nearly 11 per cent gross domestic product (GDP) growth in the fiscal year since March, rating agencies such as Moody’s as well as the Asian Development Bank (ADB) have already cut growth rates. is of.
“The continued accommodative monetary policy of the Reserve Bank of India and the expected increase in capital expenditure from the government are factors that will help improve growth,” Birla said in his message to UltraTech shareholders. In addition, the global growth prospects offer opportunities for exports as an additional strong driver of growth, he added. “The long-term prospects for the Indian economy remain strong,” the country’s leading industrialist said.
He said, “Various initiatives including privatization of public sector enterprises, monetization of assets, implementation of National Infrastructure Pipeline, targeted investment promotion through Production Linked Incentive Scheme and new Labor Code will promote a good cycle of investment and growth in the medium term. likely to give.”
Birla said the Indian economy was “on recovery path” in the second half of the financial year 2020-21, and then was hit by an unexpected second wave of COVID-19. “This has put a huge strain on health facilities in many parts of the country, leading to local lockdowns and a drop in mobility to levels a year ago,” he said. And this may lead to some re-evaluation of growth projections for FY 2021-22.(agency)