Economy

According to FinMin – India achieves full recovery in pre-pandemic output level in Q2 FY22

According to the Ministry of Finance’s monthly economic review report dated November 2021, India achieved full recovery of pre-pandemic output levels in the second quarter of the financial year 2021-22.

According to the data, real GDP expanded by 8.4% year on year in the second quarter of this fiscal year, recovering more than 100% of pre-pandemic output in the same quarter of FY 2019-20.

India achieves full recovery in pre-pandemic output level in Q2 FY22

India is one of the few countries that has increased for four consecutive quarters during COVID-19, according to the research. According to the report, the Indian economy increased in the third and fourth quarters of FY21, as well as the first and second quarters of FY22, indicating its resilience. According to the report, “the recovery was driven by a resurrection in services, full recovery in manufacturing, and continued development in agriculture sectors.” “Kick-starting the investment cycle,” it stated, “as a result of rising vaccination coverage and effective economic management activating the macro and micro drivers of growth.”

Exports and investment both increased by nearly 17 percent and 1.5 percent, respectively, over pre-pandemic levels, fueling demand recovery. Private consumption, which climbed from 88 percent in the first quarter to 96 percent in the second, became the economy’s major growth driver.

Agriculture’s supply-side growth was assisted by the manufacturing and construction industries. Both the manufacturing and construction industries performed better than they did before the pandemic.

“As contact-based services overcame pandemic concern, GVA in trade, hotel, and communication services recovered dramatically from a pre-andemic recovery rate of 70% in Q1 to 90% in Q2, becoming another emergent growth driver of the economy,” according to the research.

According to the research, the recovery would strengthen in the remaining quarters of the fiscal year. When compared to the same months in 2019, 19 of 22 high-frequency indicators (HFI) crossed pre-pandemic levels in September, October, and November 2021.

According to the report, the new coronavirus type “may represent a fresh risk to the ongoing worldwide recovery.” According to the paper, the variant will become “less severe and more so with the growing rate of immunisation in India.”

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