Chief Economic Advisor Krishnamurthy Subramanian
Krishnamurthy Subramanian said on Saturday that the government is expected to get Rs 1 lakh crore from the proposed IPO of LIC.
LIC IPO expected to get one lakh crore rupees
Subramaniam said on Saturday that the government is expected to get Rs 1 lakh crore only from the proposed IPO of LIC. The CEA said that the target given to the RBI to keep retail inflation in the target has helped in reducing the level of volatility and inflation. Explain that the RBI’s Monetary Policy Committee (MPC) has been targeted to keep annual inflation at four per cent (up or down two per cent) by 31 March 2021.
In a virtual conference of Jan Small Finance Bank, Subramaniam said that the disinvestment target of Rs 1.75 lakh crore for 2021-22 is actually the remaining part of the target of Rs 2.10 lakh crore for the financial year ending 31 March.Also read- Uni Carbon Credit Card: Union Bank’s new credit card with Hindustan Petroleum, 4% cashback will be given on filling oil
BPCL’s privatization expected to fetch Rs 75,000-80,000 crore
He said that the privatization of BPCL and the IPO of LIC will be important in this. According to estimates, the privatization of BPCL can fetch between Rs 75,000 and 80,000 crore. LIC’s IPO is expected to fetch Rs 1 lakh crore. These disinvestment figures are quite achievable. Work has started on many of these. These will be completed in the next financial year.
And banks needed
Subramanian also referred to Prime Minister Narendra Modi’s statement on privatization. The Prime Minister had said last month that the government’s job is not to do business and that its administration is committed to disinvestment of other public sector undertakings, excluding four strategic areas. Chief Economic Advisor said that India needs more banks to fulfill its growth potential. Giving examples, he said that America has one-third of the population of India but there are 25,000 to 30,000 banks there.
Economy expected to grow at more than 10 percent
On India’s long-term growth, he said that the economy is expected to grow at a rate of more than 10 percent in the next financial year. In 2022-23, this can come down to 6.5 to 7 percent. After that the economy will grow at a rate of 7.5 to 8 percent.