GDP growth in April-June quarter in last three years
2019– 5%, 2020–23.9%, 2021–18.5%*
*RBI Estimates
Good news has come for the Indian economy, which is suffering from Covid infection. Economic activities have started increasing in June due to reduction in corona cases and lifting of restrictions in the states.
E-way bill and import also improved
The increase in e-way bills and imports in the first 15 days of June are also indicating a steady improvement in economic activity.
The economy will come on the path of recovery in vaccination
Vaccination against Covid-19 will enable the economy to come back on the path of recovery. This has been said in an article in the latest bulletin of the Reserve Bank of India (RBI). The article titled ‘State of the Economy’ has been written by Deputy Governor MD Patra and other RBI officials. This article reads, “The current assessment is that the second wave of Covid has had a major impact on domestic demand.”
Improving agriculture and contactless services
The good news is that agriculture and contactless services are improving. While industrial production and exports are increasing with the pandemic protocol. Vaccination will pave the way for speedy recovery.
In the current quarter, growth is expected to be higher than pre-Covid. RBI had said after the recently held Monetary Policy Committee (MPC) meeting that the real GDP growth could be 18.5% in the first quarter of the financial year 2021-22 i.e. April-June quarter. Growth in the April-June 2020 quarter had come down to -23.9% due to the Corona epidemic. Earlier in April-June 2019, GDP growth was 5%. RBI has projected real GDP growth at 9.5% in the current financial year.
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