20.1% GDP growth based on lower base, economy can deal with COVID 3rd wave: Sanjeev Sanyal
New Delhi: The 20.1 per cent year-on-year GDP growth in April-June is based on a lower base because of lockdown in the same period in 2020, said Principal Economic Advisor Sanjeev Sanyal.
"We saw 20.1% y-o-y GDP growth in April-June. It's very strong number. No doubt it's based on a lower base because of lockdown in the same period in 2020. We'll be able to hit pre-COVID level by Oct-Dec quarter if we don't hit 3rd wave,' Sanjeev Sanyal
Sanya exuded confidence that the country is in a position to expand the economy very, very rapidly in the face of the likely COVID-19 third wave.
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"We are in a position to expand the economy very very rapidly. Even if we do get hit by 3rd wave, we've the fiscal resources to be able to deal with it. Our fiscal deficit remains very controlled. We have the space to respond if necessary."
Soon after the government released GDP data, both the ruling BJP and opposition Congress engaged in a war of words over the GDP number. Also, economists questioned the logic behind the number claimed by BJP as 'historic growth rate under PM Narendra Modi's leadership'.
The GPP had contracted by 24.4 per cent in the corresponding April-June quarter of 2020-21, according to data released by the National Statistical Office (NSO). In 2020-21, the Indian economy contracted by 7.3 per cent against 4 percent expansion in 2019-20, showing the economic impact of the COVID-19 pandemic.
