India out of technical recession in third quarter
As expected, the economy staged a turnaround in the third quarter of FY21 with a GDP growth figure of 0.4%. The stage is now set for a big rebound in FY22.
As expected, the economy staged a turnaround in the third quarter of FY21 with a GDP growth figure of 0.4%. The stage is now set for a big rebound in FY22.
The impact of Covid-19 on the economy has been massive and the survey discusses ways to manage the economic crisis post the pandemic.
The survey sees GDP contraction at 7.7% for FY21, but says a V-shaped recovery is visible. Consequently, FY22 growth is pegged at 11%.
The signs of a pick-up hold out hope, but regaining lost ground is the tough task ahead.
If the country wants to grow at a faster pace, then the government must deliver on reforms quickly as it is the only way to enable an economic recovery, says the Economic Survey.
With fundamental indicators pointing to a moderation in economic growth, equity markets were looking at the government to intervene. Finally, it has.
CEA Subramanian sees an investment-led model of growth as the panacea for many of the problems that are plaguing the economy today.
The CEA, Krishnamurthy Subramanian, feels that the major impediment to increased adoption of EVs in India seems to be the limited availability of charging infrastructure.
India’s economy might be cruising along, but the road ahead might not be smooth.
The new chief economic advisor, Krishnamurthy Subramanian, will have to strike a balance between fiscal prudence and an administration that is likely to dole out sops ahead of the general election.