Chief Economic Adviser K V Subramanian on Saturday said the country would witness revival of ‘animal spirits’ of private enterprises with the economy staging a ‘V-shaped’ 11 per cent growth in the next fiscal year beginning April.

 The Economic Survey 2020-21 presented in Parliament on Friday expects the growth rate to rebound sharply from an estimated record contraction of 7.7 per cent in the current financial year on account of the impact of the COVID-19 pandemic.

 “I think next year with an 11 per cent growth rate, that is anticipated. Private sector moves in when they see opportunities,” Subramanian said when asked about the revival of ‘animal spirits’ in private investment.

 The expression ‘animal spirits’ was coined by celebrated economist John Maynard Keynes to refer to investors’ confidence in taking action in terms of investment.

 Subramanian, the lead author of the Economic Survey, also made a case for strong counter-cyclical measures to encourage private investment. Observing that there are business cycles in the economy and there are peaks and troughs, he said, when the economy is doing really well, private sector is also doing very well and it’s time for the government to step back and consolidate its fiscal position.

 “But when the economy is not doing well, it’s in a trough, the private sector therefore is not doing very well, the void that is left on consumption, investment etc, the government moves in and fills that void,” he told PTI in an interview.