India's growth rate may dip to -6 to -9% in current fiscal, says Swamy

India's growth rate may plunge to -6 to -9 per cent during the current financial year due to Covid-19 pandemic and may bounce back next fiscal if correct policies were worked out, BJP leader and Rajya Sabha MP Subramanian Swamy said on Thursday.

"Economy has collapsed in the last four to five years. What has happened is that the Covid-19 pandemic has sharpened the decline. Now you will find between 6 per cent and 9 per cent negative growth by the end of this financial year," Swamy said.

He took part in a virtual meeting organised by Indo American Chamber of Commerce, Telangana State and Andhra Pradesh Branches.

"How will it turn around? The capacity for production is there. The very question is you should be able to make it profitable to produce and we should ensure that the workmen were required in the factories, in the fields.

They are all empowered to go back to their work. Once that happens I would say that in 2021-22 (next fiscal) we will rise to 7 per cent growth rate if you follow the right policy. Not the same policies of the last five years," he said.

Swamy said he wrote letters to Prime Minister Narendra Modi on several occasions in the past pointing out the incipient economic slowdown.

"I have written a letter to the PM about four days ago explaining what the situation will look like by the end of this year.

I wrote a letter in 2015 that the growth rate will start declining... Every year we have been declining," he added.

The BJP leader opined that only Rs 1.5trillion of the Rs 20 trillion stimulus package announced by the Centre for the revival of the declining economy due to prolonged lockdown, does not directly create demand which is necessary at this juncture.

Noting that India has a huge labour potential, he said it should be used properly like the Japanese did to grow.

Asked whether India can win a war, if it comes, against China, Swamy said if India can fight for one month, then it can defeat the neighbouring country.

"If India has the stamina to fight for one month you defeat China," he said.

Lauding the efforts of Indian troops in defending their motherland, he said the neighbouring country was defeated twice in the past. However, people are not aware as our country did not publicise it in order to avoid provoking the communist regime.

"Our people performed extremely well although 20 unfortunate soldiers lost their lives," he maintained.

He claimed that encouraging companies such as Walmart into the country may affect millions of domestic retailers.

He suggested that India, as part of bilateral trade, should exert pressure on the US to agree to import Indian agricultural products into that country.