India's chief economic adviser says overall economic impact of second COVID-19 wave 'not likely to be large'

Chief Economic Adviser K V Subramanian on Monday said the overall impact of the second wave of COVID-19 on the country's economy is not likely to be large but cautioned about an uncertainty surrounding the pandemic going ahead.

He further said that given the circumstances due to the pandemic, it is difficult to forecast if the country would achieve a double digit growth in the current fiscal.

The Economic Survey 2020-21 released in January this year had projected GDP growth of 11 per cent during the current financial year ending March 2022.

Subramanian said it would be "difficult to predict exact growth number that the country may achieve as the path for pandemic still remains uncertain".

He, however, said, "The overall economic impact of the second wave is not likely to be large." Going forward, fiscal and monetary support will be important for economy, the CEA added.

Observing that there is a need to enhance pace of vaccination, Subramanian said it would help in lowering likelihood of another COVID-19 wave. On inflation, he said it is expected to be range-bound and should not exceed the prescribed level.

The CEA further said that food grains production is projected to be at record levels this fiscal amid expectation of normal monsoon.

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