Prime Minister Modi will discuss those options for the next budget so that growth can be promoted.
Union Budget 2021 India: Prime Minister Narendra Modi will hold talks with leading economists and experts from every sector on 8 January today. In this conversation, Prime Minister Modi will discuss those options for the next budget so that growth can be promoted. This conversation is taking place at a time when there is uncertainty on many fronts due to Corona epidemic. The budget for the next financial year 2021-22 will be presented on 1 February.
This meeting is being organized by the government think tank NITI Aayog and it will be virtual i.e. through video conferencing, Prime Minister Modi will interact with economists and experts. The meeting will also be attended by Finance Minister Nirmala Sitharaman, Minister of State for Finance Anurag Thakur, NITI Aayog Vice-Chairman Rajiv Kumar and NITI Aayog CEO Amitabh Kant.
Estimates of GDP shrink in the current financial year
The meeting is scheduled to take place at a time when the country’s central bank Reserve Bank of India (RBI) has projected the Indian economy to shrink at a rate of 7.5 per cent in the financial year 2020-21 ending on 31 March 2021. However, the International Monetary Fund (IMF) estimates that GDP will shrink by 10.3 per cent in the current financial year 2020-21, while the World Bank estimates that it will shrink by 9.6 per cent.
Economic recovery was faster than expected
The Indian economy has suffered a major setback due to the Corona epidemic. However, in the September quarter of the current financial year, the economy recovered faster than expected. Due to the strength of the manufacturing sector, GDP contracted at 7.5 per cent in the September quarter. It is now expected that due to better consumer demand, there will be the better recovery in the economy. The Indian economy grew at a rate of 4.2 per cent in FY 2019-20.