The Indian economy is likely to register a growth of 9.5 percent in this financial year, former chief economic adviser Arvind Virmani said on Tuesday.

Addressing a virtual event organised by industry body PHDCCI, Virmani said that government expenditure and exports have peaked, but so far private consumption has not recovered due to the COVID-19 pandemic.

''The current financial year's growth will be higher and close to 9.5 percent. And this decade's (FY21-FY30) average growth will be 7.5 percent plus minus 0.5 percent,'' he said.

According to the recent government data, the Indian economy is estimated to grow at 9.2 percent in 2021-22, as against 7.3 percent contraction in 2020-21.

The Reserve Bank of India (RBI) has lowered the growth projection for the current financial year to 9.5 percent, while the International Monetary Fund (IMF) has projected a growth of 9.5 percent in 2021, and 8.5 percent in the next year.

The eminent economist said that India's GDP growth is now positive, but job growth is lagging.

Stressing that Micro Small and Medium Enterprises (MSMEs) are critical for inclusive growth, he said that modern MSMEs should have full opportunity to compete with the corporate sector.

Virmani noted that COVID-19 pandemic hit economic recovery and pushed for tax reforms. GST council seems focused on short-term revenue maximization, he said.

''Revenue negative GST simplification needed to provide a consumption stimulus to the economy, and quickly restore lost jobs and wages,'' he said.

News as covered on News Track, Live Mint, The Indian Wire, News Nine Live, The New Indian Express, Financial Express, The Free Press Journal, The Times of India, Money control, The Indian Express, TV9 Hindi and The Hindu

Watch full recording of Event