Growth will recover to up to 8% next fiscal, says KM Birla

Kumar Mangalam Birla said that most economies are likely to shrink this year. The nationwide lockdown had a more severe impact in urban India and on services that thrive on people’s mobility.

Billionaire industrialist Kumar Mangalam Birla expects the Indian economy to grow by 6-8% in the next fiscal, rebounding from the “unprecedented economic shock” caused by the Covid-19 lockdowns.

Kumar Mangalam Birla said that most economies are likely to shrink this year. (HT Photo)

“The gradual unlocking of the economy is reflecting in improvement in some economic indicators like GST (goods and services tax) collections, electricity consumption, etc. However, they are not yet back to pre-Covid-19 levels,” Birla said at the annual shareholders’ meeting of the Aditya Birla group’s flagship UltraTech Cement Ltd on Wednesday.

Birla said that most economies are likely to shrink this year.

The nationwide lockdown had a more severe impact in urban India and on services that thrive on people’s mobility.

However, the economic disruption to the rural economy appears to be less severe, he added.

“Periods of turmoil have historically presented an opportunity for industry leaders to emerge as champions — powered by quality leadership, financial strength, and sound business fundamentals. With unmatched capacity, leadership across markets and a robust balance sheet, your company (UltraTech) is one such champion,” the Aditya Birla group chairman said.