GDP may return to pre-pandemic level by mid 2021: CEA

The real GDP is projected to return to its pre-pandemic level in mid-2021 said Chief Economic Adviser Krishnamurthy Subramanian.

Speaking at the CII Kerala annual day a conference on “Impact of Covid-19 on Economy & Recovery Strategies: Lives, Livelihood and Growth”, he said investment sentiments have increased 20 per cent which is highest in 10 years. Going forward, the Atma Nirbhar Bharath policies of Government will go a long way in fulfilling the objective of sustainable growth, he said.

A self- reliant India is possible by empowering more private sector undertakings. Ethical wealth creation plays a significant role in building self-reliant India, he said adding, that private investments lead to growth, creation of jobs, and revenue increase and ultimately it leads to development.

M Rajeshwar Rao, Deputy Governor, Reserve Bank of India said that financial liquidity has increased to 2.3 trillion to reinforce markets. The growth will become double digit by 2021-22. The credit flow for the current year was ₹6.85 lakh crore. The credit to industry contracted by 1.3 per cent in January this year as compared to 2.5 per cent growth in January 2020, mainly due to contraction in credit to large industries by 2.5 per cent (2.8 per cent growth in January 2020).

However, the credit to medium industries registered a robust growth of 19.1 per cent in January as compared to 2.8 per cent a year ago.

K Ellangovan, Principal Secretary - Industries & NORKA, said that Kerala was the worst hit by Covid-19 and the recovery strategies by the Government have helped the industries to bounce back faster. Kerala was the first state to roll down effective strategies to help Industries. Kerala had to fight with various other factors in addition to the crisis made by Covid-19 which included the large number of Gulf returnees.