Last Updated on Dec 14, 2021 by Manonmayi
Even though India has logged nearly three dozen cases of the new coronavirus variant Omicron, the Ministry of Finance has stated that India is one among only a few economies to rebound strongly from the pandemic induced contraction of 2020-2021.
In its monthly Economic Review, the ministry stated that India is one of the few nations to have grown for four consecutive quarters in Covid-19 (Q3, Q4 of FY 2021 and Q1, Q2, of FY 2022), demonstrating the Indian economy’s resilience. What drove the recovery was a comeback in services, sustained development in agriculture sectors, and full recovery in manufacturing.
The report went on to say that the recovery indicated a resumption of the investment cycle, which will aid by rising vaccine coverage and effective economic management.
The ministry cited the latest data from the 22 High-Frequency Indicators (HFIs). High-frequency data is the time-series data recorded at an incredibly tiny scale. These indicators are widely used in financial research and high-frequency trading. This data showed that 19 economic indicators of September to November 2021 were higher than those in the pre-pandemic period. And the corresponding months of 2019 indicated that the country’s economic recovery could continue in the remaining quarters of the financial year.
The finance ministry stated that Omicron might offer a new threat to global recovery. Still, preliminary information shows that this variant could be less severe, particularly since the vaccination rates have increased.
Due to the impacts of the Covid-19 pandemic, the latest analysis identified 2021 as a “catch-up” year for the global economy, including India’s.
