New Delhi: India will be among only a few economies in the world to rebound strongly from economic contractions induced by Covid-19 of 2020-21, reports of the Ministry of Finance said demanding that the impact of omicron variants in the economy will be more severe due to fast vaccination.
Real GDP in Q2 from FY2021-22 has grown by 8.4 percent yoy, recovering more than 100 percent of the pre-pandemic output in the appropriate quarter of the FY2019-20, said the monthly economic review was prepared by the Ministry of Finance.
“India is among several countries that have recorded four quarters of consecutive growth in covid-19 (Q3, Q4 of FY21 and Q1, Q2 of TA22) reflecting Indian economic resilience.
Recovery driven by the resurrection in service, full recovery in the field Manufacturing and sustainable growth in the agricultural sector, “he said.
Recovery suggests an initial kick from the investment cycle, supported by jumping vaccination coverage and efficient economic management activates macro and micro-growth drivers, the report said.
India’s economic recovery is expected to get further strength in the remaining place of the financial year, it is evident from 19 among 22 high frequency indicators (HFI) in September, October and November 2021 across their pre-pandemic level in the appropriate months In 2019.
It said.
“However, Omicron, the new variant of Covid-19 can pose a new risk in the ongoing global recovery.
However, initial evidence shows that the omicron variant is expected to be less severe and more with the increase in vaccination in India,” said the Ministry of Finance.
Observing that the Covid-19 pandemic has caused a large human fisheries and economic costs in their development objectives, the latest reviews said, in 2021 thus the year “catching up” for the global economy including India, trying to recover pre-pandemic output levels in 2019 .
India is not only following a pre-pandemic output of Q2, but is also expected to do so for the full year, he said, adding, the Monetary Policy Committee (MPC) statement it has maintained its December forecast of 9.5 percent growth during FY 2021-22, implying a recovery Full and 1.6 percent growth over the level of pre-pandemic PDB FY 2019-20.
“India will be among only a few economies in the world to rebound firmly from the economic contraction induced by Covid-19 of 2020-21,” he said.
Noting that the agricultural sector has become the foundation in which economic contractions in India are minimized in the FY2020-21 and recovery recovery at FY2021-22, the report said the increase in grain production, the increase in MSP for Kharif and Rabbi klop in 2021 -22 had also raised Rural income.
The central government’s finance improved during 2021 April to October 2021 for the period in accordance with the previous year, with direct and indirect taxes that showed significant yoy growth, he said, adding that sustainable increase in a collection of revenue collection well to achieve the target of the government’s fiscal deficit.
At 6.8 percent of GDP for the current financial year.
In the first seven months of FY2021-22, it was said that the government increased public capital expenditure in infrastructure by 28.3 percent over the period in accordance with last year with a focus on the train, road transportation, and housing and affairs.
Revenue revenues during this period see yoy growth which is much lower by 7.5 percent, indicating the changes spoken towards the total quality of improved expenditure, he added.