Revival of economy not uniform, government should continue support to affected areas: Report

The revival of the Indian economy is still not the same and the government should continue with income support measures to the affected sectors. A report by Switzerland-based brokerage company UBS Securities said that the revival of the economy is not yet comprehensive.

The report said that the economy is on the path of revival and is likely to grow at a rate of 6 to 6.5 percent in the medium to long term.

The participants of the survey said that after three waves of the epidemic, there is a significant improvement in the economy. UBS Chief Economist Tanvi Gupta Jain said there is a revival in the economy, but it is not yet widespread.

He said that growth can be boosted with adequate policy support to the unorganized sector. For this the expenditure fixed in the budget should be met. “There is a need to finance micro, small and medium enterprises (MSMEs).”

The participants in the report said that India has the potential to register a growth of 6 to 6.5 percent. This is because the focus is on digitization leading to higher productivity gains.

Jain said consumer sentiment is improving now, but no data shows that sentiment is close to pre-pandemic levels. In the consumer survey conducted for the week ending February 20, the expectations of households about their income have improved. 13 percent of the households said that their current income is higher than last year.