The V-shaped recovery within the half-moon of 2021-22, despite the brutal second wave of the coronavirus pandemic, may be a testimony to India’s strong macroeconomic fundamentals, consistent with the Finance Ministry.
In its latest Monthly Economic Review, the Finance Ministry also expressed concern over high incidence of COVID-19 cases in Kerala and Maharashtra and underlined the necessity for strengthening pandemic control and management in these two states.
The Indian economy grew by 20.1 percent within the half-moon of the present fiscal year reaffirming, “India’s resilient V-shaped recovery despite an intense second wave,” it said.
Hit hard by the coronavirus pandemic, the economy had dipped by 24.4 percent during the primary quarter of the previous fiscal.
More recently, the eight-core industries index for July 2021, rose by 9.4 percent year-on-year (YoY)with all sectors except petroleum and refinery products surpassing pre-pandemic levels, it said.
“The fast-paced recovery is further evident in growth of power consumption, rail freight, highway toll collections, e-way bills, digital transactions, air passenger traffic and robust GST collections. India’s PMI Composite index including both manufacturing and services is comfortably placed at 55.4, signalling commencement of economic expansion,” it said.
On the flip side it said, the looming fear round the Delta variant of COVID-19 has once more cast a shadow necessitating sustained precautions against it with greater specialise in testing, tracking and adopting COVID-19 appropriate behaviour.
Kerala remains a priority accounting for around 60 percent of daily new cases within the country and reporting the very best daily deaths across all states, it said.
Observing that the robust recovery in tax collections augurs well for the govt to supply the specified budgeted support to the economy, the report said, the recent decision to repeal the retrospective law introduced in 2012, further reflects the commitment of the govt towards providing a stable and predictable tax regime for all stakeholders.