Indian economy has bottomed out; formal sector may get back to pre-Covid level by this year-end: Montek

Prime News, National (New Delhi), September 24:- The Indian economy has bottomed out and the formal sector is likely to get back to pre-pandemic levels by the end of this year, former deputy chairman of erstwhile Planning Commission Montek Singh Ahluwalia said on Thursday.

Addressing a virtual event, Ahluwalia said he is in favour of the National Monetisation Pipeline (NMP) that will look to unlock value in infrastructure assets across sectors ranging from power to road and railways.

“One of the main positives is that the economy has actually bottomed out. And the formal sector may be getting back to pre-pandemic levels by the end of this year, it will be different for different sectors, service sectors, etc,” he said.

Ahluwalia opined that if the formal sector sees an economic rebound, then the informal sector will also follow it, adding that a healthy economic rebound happens, when private sector investments also pick up.

The Indian economy grew by a record 20.1 per cent in the April-June quarter, helped by a very weak base of last year and a sharp rebound in the manufacturing and services sectors in spite of a devastating second wave of COVID-19 case.

The Reserve Bank of India (RBI) has lowered the country’s growth projection for the current financial year to 9.5 per cent from 10.5 per cent estimated earlier, while the World Bank has projected India’s economy to grow at 8.3 per cent in 2021.

On recent measures by the government with regards to infrastructure, Ahluwalia said,” I am in favour of NMP, if it is properly done then it will be a good thing.”

Last month, Finance Minister Nirmala Sitharaman had announced a Rs 6 lakh crore National Monetisation Pipeline. (MR, Inputs: Agencies).

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