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Despite Omicron scare, India to be among few economies to rebound strongly: Ministry of finance
Initial evidence suggests that Omicron is expected to be less severe, and more so with the increasing pace of vaccination, the ministry said.
Even as concerns over the new coronavirus disease (Covid-19) variant, Omicron, persist, with the country, thus far, logging nearly three dozen cases of the variant first reported from southern Africa, the ministry of finance has said that India will be ‘among only a few economies to rebound strongly from the Covid-19 induced contraction of 2020-21.’
Also Read | India's Omicron tally rises to 33: Tracing Covid-19's new variant in various states
“India is among the few countries that have recorded four consecutive quarters of growth amid Covid-19 (Q3, Q4 of FY21 and Q1, Q2 of FY 22) reflecting the resilience of the Indian economy. The recovery was driven by a revival in services, full-recovery in manufacturing and sustained growth in agriculture sectors,” the ministry said in its monthly Economic Review, news agency PTI reported.
The recovery suggests kick-starting of the investment cycle, supported by surging vaccination coverage and efficient economic management activating the macro and micro drivers of growth, the report further mentioned.
Also Read | India's GDP grows 8.4% in Q2 2021-22, compared to 7.4% contraction a year ago
Citing the latest data related to the 22 High Frequency Indicators (HFIs), which stated that 19 economic indicators, in the months of September-November, 2021, were at levels higher than those during the pre-pandemic period, in the corresponding months of 2019, the ministry said that the data is evidence that the country’s economic recovery is slated to gain further strength in the remaining quarters of the financial year.
Also Read | 19 of 22 economic indicators at levels higher than during pre-Covid times: Centre
“Yet Omicron may pose a fresh risk to the ongoing global recovery. However, preliminary evidence suggests that this variant is expected to be less severe, and more so with the increasing pace of vaccination,” the Finance ministry said.
The latest review also described 2021 as a ‘catch-up’ year for the global economy, including India’s, due to the effects of the Covid-19 pandemic.
India has thus far seen 33 cases of Omicron, which is denoted as B.1.1.529. While the first two were reported in Karnataka, Maharashtra, at 17, has seen the highest number of Omicron patients. Delhi, Gujarat and Rajasthan have also logged cases of this latest Covid-19 variant.
