India's economy will grow this year by at least 7.5% in terms of GDP, on the back of improvement in investment cycle and capacity utilisation, Rajiv Kumar, Niti Aayog vice chairman said.
Kumar said the credit growth has increased to 12.5% as against the 4% a year ago. Capacity utilization is at 74% after two years and four months, he added.
"The economic environment is extremely positive and optimistic. The investment cycle has certainly turned upwards," he had told PTI on Saturday.
Capacity utilisation had also risen to 74%, while inflation was well under the target, he had said.
Kumar is also optimistic that the better capacity utilization will bring in new investment in the economy, given that double-digit growth has been seen in the manufacturing sectors like heavy and medium truck,s and other auto segments.
"Cement and steel are some of the sectors which are beginning to click now. Builders are coming in a big way in the government's affordable housing initiative," Kumar said on India's housing initiative.
He is confident that India will achieve the double-digit GDP growth by 2022.
On the recent trade measures, Kumar said that bringing trade safeguards on more commodities is always a good idea, and that India should focus on specialising in some sectors.
For the agriculture sector, Kumar highlighted the good monsoon forecast and said it will only help accelerate the economic revival currently being experienced by the economy.
However, Kumar said there should be more trade safeguards in the agriculture sector. "There is a need to ensure that farmers get right price till they improve productivity," he said.
The recent US-China global trade wars buzz has not even started and is only being talked about, according to Kumar. "In my opinion, a trade war between US and China will never start," he said.
On the Air India divestment, Kumar said, "Department of Investment and Public Asset Management is confident of successfully divesting the stake in Air India."