Indian economy on V-shaped recovery path post unlock: ES

January 29, 2021 17:29

The Economic Survey 2020-21 tabled by Finance Minister Nirmala Sitharaman in the Parliament on Friday said the country's economy after being gradually unlocked since June 2020 has experienced a V-shaped recovery.

"Despite the hard-hitting economic shock created by the global pandemic, India is witnessing a V-shaped recovery with a stable macroeconomic situation aided by a stable currency, comfortable current account, burgeoning forex reserves and encouraging signs in the manufacturing sector output," the survey noted.

The survey said the V-shaped economic recovery is due to mega vaccination drive, robust recovery in the services sector, and robust growth in consumption and investment.Country's Chief Economic Advisor Dr K Subramanian has likened India's economic recovery to the Indian cricket team's recent victory against Australia.

"The cover also captures the V-shaped recovery that has happened in the economy. In fact, it mirrors V-shape performance that the Indian cricket team delivered in Australia well after being short out for 36 in an hour, they went on to win the series. The resilience of the Indian economy is mirroring the resilience of Indian cricket team as well," he said.

It stated that with the economy brought to a standstill for two complete months, the inevitable effect was a 23.9 per cent contraction in Gross Domestic Product (GDP) as compared to the previous year's quarter. This contraction was consistent with the stringency of the lockdown.

However, "While there was a 23.9 per cent contraction in GDP in quarter 1 (Q1), 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," said the survey. -- ANI

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