Indian economy sees record growth during deadly Covid wave: Report

According to a monthly report by the Union Finance Ministry, the manufacturing sector in India has recovered more than 90 percent during the current financial year amid the Covid second wave. Thus the country could acquire 20.1 percent growth in the total. Last year, there was a loss of 24.4 percent in the total growth of India but later this year, it could see a comeback and total growth especially in the manufacturing sector. The Indian government’s chief economic adviser K V Subramanian pointed to private investments and consumer spending for helping to boost the so-called ‘V-shaped’ recovery.

However, the report says that the delta virus variant is raising annual fears and that Kerala, which reports 60 percent of the Covid rate on a daily basis remains concerned. With 70 percent of the Covid cases in the country being from Kerala and Maharashtra, the report suggests that both states should continue to inspect and strictly adhere to Covid norms.

Manufacturing and construction also drove growth, according to India’s statistics ministry. The Indian economy shrank by 7.3% in its last financial year. It has been among the world’s major economies to be hit hardest by the pandemic. The annual growth rate of eight major industries, excluding crude oil and refinery products rose to 9.4 percent in July. “This is a good sign that the country is recovering economically,” the report said. 

The revenue growth, including direct and indirect taxes, during the April-July period, was significantly higher than the previous year, giving confidence to the economy.  The government hopes this will enable it to provide the exact amount needed for budget announcements.