Despite Omicron scare, India to be among few economies to rebound strongly: Ministry of finance | Latest News India
Even as concerns persist over the new variant of the coronavirus disease (Covid-19), Omicron, with the country so far recording nearly three dozen cases of the variant first reported from southern Africa, the Treasury Department has announced. said India will be “just a few economies to recover strongly from the Covid-19-induced contraction of 2020-21.”
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“India is one of the few countries to have recorded four consecutive quarters of growth during Covid-19 (Q3, Q4 of FY21 and Q1, Q2 of FY 22), reflecting the resilience of the Indian economy. The recovery was driven by a rebound in the services sector, full recovery in the manufacturing sector and continued growth in the agricultural sectors,” the ministry said in its monthly Economic Review, PTI news agency reported.
The recovery suggests a kick-start to the investment cycle, supported by rising vaccination rates and efficient economic management that activates the macro and micro drivers of growth, the report said.
Also read | India’s GDP will grow 8.4% in Q2 2021-22, compared to a contraction of 7.4% a year ago
Citing the most recent data related to the 22 high-frequency indicators (HFIs), which stated that 19 economic indicators in the months of September-November 2021 were at a higher level than during the pre-pandemic period, in the corresponding months of In 2019, the ministry said the data is evidence that the country’s economic recovery is set to strengthen even further in the remaining quarters of the fiscal year.
Also read | 19 of 22 economic indicators at a higher level than during pre-Covid times: Center
“Yet Omicron may pose a new risk to the ongoing global recovery. However, preliminary evidence suggests that this variant is expected to be less severe, and more so with the increasing pace of vaccination,” the Treasury Department said.
The latest review also described 2021 as a “catch-up year” for the global economy, including India’s, due to the effects of the Covid-19 pandemic.
India has so far seen 33 cases of Omicron which is designated as B.1.1.529. While the first two were reported in Karnataka, Maharashtra has seen the highest number of Omicron patients at the age of 17. Delhi, Gujarat and Rajasthan have also registered cases of this latest Covid-19 variant.