E-Paper
What Economic Survey says about V-shaped recovery post Covid-19
Dissecting the impact of Covid-19 on various sectors of the country, the survey said that India's economy witnessed a palpable V-shaped recovery in industrial production over the year.
A resilient V-shaped recovery is underway for the Indian economy, the Economic Survey for the year 2020-21, which was tabled by Union finance minister Nirmala Sitharaman in both the Houses of Parliament on Friday, has said. The survey credits the recovery of the Indian economy to the Covid-19 vaccination drive carried out by the Centre and states across the country as well as a rebound in consumer demand.
"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 Economic Survey reads.
The survey mentions that in line with the government's anticipation, the lockdown resulted in a 23.9 per cent contraction in GDP in Q1 but the recovery has been a V-shaped one as seen in the 7.5 per cent decline in Q2 and the recovery across all key economic indicators. "Starting July, a resilient V-shaped recovery is underway, as demonstrated by the recovery in GDP growth in Q2 after the sharp decline in Q1," the survey states.
Citing factors driving the Indian economy after the coronavirus pandemic, the survey mentions: "As India’s mobility and pandemic trends aligned and improved concomitantly, indicators like E-way bills, rail freight, GST collections and power consumption not only reached pre-pandemic levels but also surpassed previous year levels."
Dissecting the impact of Covid-19 on various sectors of the country, the survey said that India's economy witnessed a palpable V-shaped recovery in industrial production over the year. "Manufacturing rebounded and industrial value started to normalize. Indian services sector sustained its recovery from the pandemic driven declines with PMI Services output and new business rising for the third straight month in December," the survey states.
The Economic Survey has also correlated India's response to the disease outbreak - short-term pain for long-term gain - with the V-shaped recovery. "India’s policy humane response that focused on saving human lives, recognised that the short-term pain of an initial, stringent lockdown would lead to long-term gains both in the lives saved and in the pace of the economic recovery," the survey mentions.
"The scores of lives that have been saved and the V-shaped economic recovery that is being witnessed bear testimony to India’s boldness in taking short-term pain for long-term gain," according to the survey.
