According to the finance ministry, the Indian economy is expected to do better than the projected 8% contraction in the current fiscal year as economic growth picks up with a slight stiffening of the pandemic curve and the launch of vaccinations.
In the monthly update, the Department of Economic Affairs stated that global demand recovery has eased as a result of the re-imposition of lockdowns in developed nations due to revived COVID-19 waves and their evolving variants.
However, despite a slight tightening of the COVID-19 curve, the financial sector of India has picked up, failing to discourage a gradual rise in market confidence, which has now been spurred by the inoculation push.
“Generally ignored in the context of the production of the COVID-19 vaccines and continuing inoculation campaigns, public distancing proposes as a social vaccine that also needs to be clearly applied to the health and economy in addition to making a rapid recovery both in India and overseas… The social vaccine is as relevant as the actual vaccine, “It said that.
Though India has avoided the second wave of the pandemic, there’s been a rising prevalence in eight states: Maharashtra, Kerala, Punjab, Tamil Nadu, Gujarat, Madhya Pradesh, Karnataka, and Haryana, underlining the impossibility of social distancing in holding the epidemic at bay before a mass movement of vaccinated population accumulates resistance to manage disease rise.
Significant GDP growth in Q3 of FY21, for the very first instance, because the pandemic occurred, contributes to the optimism, as the market is likely to end the year with output rates higher than those calculated in the second advance estimates of GDP, according to the study.