The Finance Ministry report said that due to the new form of Kovid-19, Omicron, may pose a new risk to the global recovery. However, the initial evidence that has been found so far gives hope that it will not have a serious impact on the economy.
India doing great economic reforms amid Corona
India will also be among the few countries to recover rapidly in the current financial year 2021-22 from the decline in the economy due to Kovid-19. This has been said in a report released by the Finance Ministry on Saturday. The report said that India is one of the few economies in the world that will recover more quickly from this ‘contraction’. Along with this, it has been said in the report that due to rapid vaccination in the country, the new form of corona virus, Omicron, will not have a more serious impact on the economy.
India increased amid Corona epidemic
In the monthly economic review of the Finance Ministry, it has been said that the growth rate of Gross Domestic Product (GDP) in the second quarter of the current financial year has been 8.4 percent on a year-on-year basis. In this way the production of the country has improved by more than 100 percent from the same pre-pandemic period of 2019-20.
The report says, “India is among the few countries that have registered growth for four consecutive quarters (third and fourth of the last financial year and first and second of the current financial year) between Kovid-19.” This shows the combative potential of the Indian economy. There has been a revival in the service sector of the country, the manufacturing sector has fully recovered and the agriculture sector is also recording steady growth.
Omicron may create new risk
It has been said in the report that this revival indicates the resumption of the investment cycle. It has helped in rapid vaccination. The revival of the economy will pick up further in the remaining quarter of the current financial year. In September, October and November, 19 out of 22 High Cyclic Indicators (HFIs) performed better as compared to the same months in pre-pandemic i.e. 2019.
The Finance Ministry report said that due to the new form of Kovid-19, Omicron, may pose a new risk to the global recovery. However, the initial evidence that has been found so far gives hope that it will not have a serious impact on the economy.
Reserve Bank estimates growth rate of 9.5 percent
In the monthly review of the Ministry of Finance, it has been said that the huge human and economic cost of this epidemic is sitting on various countries, due to which they have to fall back on their development goals. The report says that the year 2021 will be a year for the global economy, including India, to ‘catch up’ on what has been left behind and they will try to regain 2019 production levels.
The report said that not only has India ‘catched up’ to pre-pandemic production levels in the second quarter, but it would be able to do so for the entire year. The Monetary Policy Committee (MPC) of the Reserve Bank has also retained its growth forecast of 9.5 per cent for the current financial year. The report says, “India is among the few countries in the world that will be able to recover from the decline in the economy due to the Kovid-19 epidemic in 2021-22.
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