India economy likely to contract by 10% in FY21: Former Planning Commission’s Abhijit Sen

By: |
December 4, 2020 7:44 PM

Abhijit Sen, also an expert on issues related to agriculture, further said that the government would not be able to double farmers' income by 2022.

economic growth, economic recovery, comeback meter, care ratings, production, investment, consumptionCECM stood at 0.58 in August, 1.1 in September, 1.79 in October, and 2.62 in November.

India’s economy is likely to contract by around 10 per cent in the current fiscal, eminent economist and former Planning Commission member Abhijit Sen said on Friday. Sen, also an expert on issues related to agriculture, further said that the government would not be able to double farmers’ income by 2022. “We are heading towards 10 per cent negative growth this year (2020-21). It will certainly not be minus 7.5 per cent, it will be worse than that. People are hoping there will be a huge rebound next year, I doubt it ,” he told PTI.

According to the RBI, ”the economy is likely to contract by 7.5 per cent in 2020-21. Sen said at the moment, the government is expecting it(rebound) to happen without doing anything. “So that is just hope, actual government spending is less than what was budgeted for,” he pointed out.

Talking about protesting farmers, mainly from Punjab and Haryana, who are agitating against the Centre’s new agriculture reform laws, Sen noted that the government has one view and farmers have another view. “It’s a difference of opinion,” he said, adding that the main failing of the government in this matter has been that it (new farms laws) has been rushed through.

“Farmers have genuine grievances because they are unsure of the future.” Punjab by and large produces two major crops, wheat and paddy. Replying to a question on whether the Modi government will be able to achieve the target of doubling farm income by 2022, Sen said, “Certainly not.”


Do you know What is Positive GDP growth seen in Q3, need to fight inflation: RB, Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1World Economic Forum’s online Davos summit to begin Sunday; Modi, Jinping among listed speakers over six days
2CM Nitish Kumar must bridge political-economic divide in Bihar with more balanced choices on policy fronts
3Kerala passes resolution against CAG’s audit report