Indian Economy To See 'V'-shaped Recovery, Govt's Economic Survey Says
India's economy is set for a 'V'-shaped recovery in the next
fiscal year, thanks to a massive vaccination drive and an expected
rebound in the services sector, the Finance Ministry's latest
Economic Survey report said Friday.
Real GDP is set to grow 11.0 percent n 2021-22 after an
estimated 7.7 percent contraction in 2020-21 financial year.
Elsewhere on Friday, the statistics ministry revised the 2019-20
GDP growth estimate to 4.0 percent from 4.2 percent. In 2018-19,
GDP grew 6.8 percent.
"The V-shaped economic recovery is supported by the initiation
of a mega vaccination drive with hopes of a robust recovery in the
services sector and prospects for robust growth in consumption and
investment," the ministry said.
The economy would take two years to reach and go past the
pre-pandemic level, the report said.
Earlier this week, the IMF forecast 11.5 percent growth for the
Indian economy in 2021-22, which would be the fastest among major
economies, and 6.8 percent for 2022-23. The economy is estimated to
have shrunk 8 percent in 2020-21.
The survey showed that agriculture output is set to grow 3.4
percent in 2021-22, while output in industry and services are
expected to contract 9.6 percent and 8.8 percent, respectively.
Further, the ministry forecast a current account surplus of 2
percent of GDP in the fiscal year 2021, which will mark a historic
high after 17 years. The Finance Minister is set to present the
latest budget on February 1.