New Delhi: India will be one of the few economies in the world to make a strong recovery from the Covid-19 induced economic contraction of 2020-21, said a report by the Finance Ministry. omicron The impact of the variant on the economy will be less severe due to faster vaccination.
Real GDP grew by 8.4 percent in the second quarter of FY2021-22 Year after yearThe monthly economic review prepared by the Finance Ministry states that the recovery of more than 100 percent of the pre-pandemic production in the same quarter of the financial year 2019-20.
“India is among the few countries that have registered growth for four consecutive quarters amid Covid-19 (Q3, Q4, Q4, Q2 of FY21), reflecting the resilience of the Indian economy. The recovery was driven by a revival in services , complete reforms in the manufacturing sector and sustained growth in the agriculture sectors.”
The report said the recovery suggests a kick-starting of the investment cycle, supported by immunization coverage and efficient economic management that activates macro and micro drivers of growth.
India’s economic recovery is expected to strengthen further in the remaining quarters of the fiscal year, as evidenced by 19 out of 22 High Frequency Indicators (HFIs) in September, October and November of 2021, compared to their earlier growth in the same months of 2019. The epidemic level has been exceeded. , it said.
“Nevertheless, a newer variant of OMICRON, COVID-19, may pose a new risk to the ongoing global recovery. However, preliminary evidence suggests that the OMICRON variant is less severe and more likely to occur with increasing pace of vaccination in India. Hopefully,” the finance ministry said.
Noting that the COVID-19 pandemic has inflicted considerable human and economic costs on getting countries back on their development goals, the latest review said, the year 2021 will thus be a “catcher” for the global economy, including India. “It’s the year, which is trying to recover. Pre-pandemic production levels of 2019.
India has not only caught up with its pre-pandemic output for Q2, but is expected to do so for the full year as well, it said, the Monetary Policy Committee (MoP)MPC) in its December statement has maintained a growth forecast of 9.5 per cent during FY 2021-22, which means full recovery and a growth of 1.6 per cent over the pre-pandemic GDP level of FY 2019-20.
“India will be one of only a few economies in the world to rebound strongly from the Covid-19 induced economic contraction of 2020-21,” it said.
Noting that the agriculture sector has been the cornerstone on which the economic contraction in India was moderated in FY 2020-21 and accelerated recovery in FY 2021-22, the report said, the production of food grains, The increase in MSP for both Kharif and Rabi crops in 2021-22 has also increased rural income.
The finances of the central government improved during April 2021 to October 2021 as compared to the corresponding period of the previous year, showing a significant YoY growth in both direct and indirect taxes, adding that the revenue collection continued to improve with the government’s fiscal Good for achieving the deficit target. 6.8 per cent of GDP for the current financial year.
In the first seven months of the financial year 2021-22, it said the government has reduced public capital expenditure in infrastructure by 28.3 per cent compared to the same period last year, with a focus on railways, road transport and highways and housing and urban affairs. has increased.
The revenue expenditure during this period showed a marginal growth of 7.5 per cent year-on-year, indicating a clear shift towards better quality of the total expenditure.
Real GDP grew by 8.4 percent in the second quarter of FY2021-22 Year after yearThe monthly economic review prepared by the Finance Ministry states that the recovery of more than 100 percent of the pre-pandemic production in the same quarter of the financial year 2019-20.
“India is among the few countries that have registered growth for four consecutive quarters amid Covid-19 (Q3, Q4, Q4, Q2 of FY21), reflecting the resilience of the Indian economy. The recovery was driven by a revival in services , complete reforms in the manufacturing sector and sustained growth in the agriculture sectors.”
The report said the recovery suggests a kick-starting of the investment cycle, supported by immunization coverage and efficient economic management that activates macro and micro drivers of growth.
India’s economic recovery is expected to strengthen further in the remaining quarters of the fiscal year, as evidenced by 19 out of 22 High Frequency Indicators (HFIs) in September, October and November of 2021, compared to their earlier growth in the same months of 2019. The epidemic level has been exceeded. , it said.
“Nevertheless, a newer variant of OMICRON, COVID-19, may pose a new risk to the ongoing global recovery. However, preliminary evidence suggests that the OMICRON variant is less severe and more likely to occur with increasing pace of vaccination in India. Hopefully,” the finance ministry said.
Noting that the COVID-19 pandemic has inflicted considerable human and economic costs on getting countries back on their development goals, the latest review said, the year 2021 will thus be a “catcher” for the global economy, including India. “It’s the year, which is trying to recover. Pre-pandemic production levels of 2019.
India has not only caught up with its pre-pandemic output for Q2, but is expected to do so for the full year as well, it said, the Monetary Policy Committee (MoP)MPC) in its December statement has maintained a growth forecast of 9.5 per cent during FY 2021-22, which means full recovery and a growth of 1.6 per cent over the pre-pandemic GDP level of FY 2019-20.
“India will be one of only a few economies in the world to rebound strongly from the Covid-19 induced economic contraction of 2020-21,” it said.
Noting that the agriculture sector has been the cornerstone on which the economic contraction in India was moderated in FY 2020-21 and accelerated recovery in FY 2021-22, the report said, the production of food grains, The increase in MSP for both Kharif and Rabi crops in 2021-22 has also increased rural income.
The finances of the central government improved during April 2021 to October 2021 as compared to the corresponding period of the previous year, showing a significant YoY growth in both direct and indirect taxes, adding that the revenue collection continued to improve with the government’s fiscal Good for achieving the deficit target. 6.8 per cent of GDP for the current financial year.
In the first seven months of the financial year 2021-22, it said the government has reduced public capital expenditure in infrastructure by 28.3 per cent compared to the same period last year, with a focus on railways, road transport and highways and housing and urban affairs. has increased.
The revenue expenditure during this period showed a marginal growth of 7.5 per cent year-on-year, indicating a clear shift towards better quality of the total expenditure.
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