The Indian economy was still recovering from the first wave of coronavirus that the second wave gave it a big blow. The setback was not as severe as in the first wave as states resorted to partial lockdowns or some restrictions, but some sectors did come under severe pressure. At the same time, the impact of the two waves of the common man and the economy of the country was felt very heavy. And now amidst the worry of the third wave, a report of the Finance Ministry has said that after facing the second wave, the economy is now showing signs of recovery.
The Ministry of Finance has published the Monthly Economic Review Report for June 2021 on Friday.
S&P cuts India’s projected growth rate to 9.5% from 11%
Its important points are as follows:
Due to the second wave, the economic recovery is seen uneven in some sectors. There is a very slow improvement in port traffic, air traffic, PMI manufacturing and services.
The latest estimates of industrial production show that the eight core industries of the country may see a gradual growth in a phased manner. May 2021 has shown year on year growth of 16.8 per cent, which is down 8 per cent from May 2019.
Due to good monsoon, increasing sowing of Kharif and increasing process of unlocking in the states, food supply and inflation are expected to get relief. However, risks remain on the back of a demand-led recovery under commodity prices and cost pressures in inputs.
The Indian economy is showing signs of recovery due to targeted fiscal relief, relief measures taken under monetary policy and rapid vaccination drives.
The report said that by further expansion of vaccination and strict adherence to the rules necessary to prevent the spread of Kovid-19, a protection against the third wave can be created.