New Delhi: India’s economy is projected to grow 8 percent to 8.5 per cent in the financial year beginning April 1, 2021, signaling a strong recovery after it was slammed by the COVID-19 pandemic.
The Indian government’s annual economic survey, was released on Monday.
The survey also forecast that India’s economy will expand at a 9.2 per cent annual pace in the current financial year. That would make Asia’s third-largest economy one of the fastest growing major economies after it suffered a 7.3 per cent contraction the year before, its worst performance in 40 years.
Almost all indicators show that the economic impact of the COVID-19 surge last year, driven by the Delta variant, was much smaller than that experienced during the full lockdown phase in 2020-21 even though the health impact was more severe.
Agriculture did best, followed by industries including manufacturing, mining and construction.
The economy grew at an 8.4 per cent annual pace in the July-September quarter after contracting by over 7 per cent in the same quarter the year before.
Activity was supported by rising vaccination rates, which helped instill confidence in reopening businesses, and pent-up demand after months of restrictions and varying shutdowns. Over half of India’s nearly 1.4 billion population is fully vaccinated, with about 20 per cent still awaiting their second shots.
Unemployment rose to nearly 8 per cent in December 2021, a four-month high, according to data from the think tank Center for Monitoring Indian Economy, the Associated Press (AP) news reported. --ONA
Oman Observer is now on the WhatsApp channel. Click here
