New Delhi, 31 Jan (ONA) — India’s economy is projected to grow 8% to 8.5% in the financial year beginning 1 April 2021, signaling a strong recovery after it was slammed by the COVID-19 pandemic.
The Indian government’s annual economic survey, was released today.
The survey also forecast that India’s economy will expand at a 9.2% annual pace in the current financial year. That would make Asia’s third-largest economy one of the fastest growing major economies after it suffered a 7.3% contraction the year before, its worst performance in 40 years.
Almost all indicators show that the economic impact of the COVID-19 surge last year, driven by the Delta variant, was much smaller than that experienced during the full lockdown phase in 2020-21 even though the health impact was more severe.
Agriculture did best, followed by industries including manufacturing, mining and construction.
The economy grew at an 8.4% annual pace in the July-September quarter after contracting by over 7% in the same quarter the year before.
Activity was supported by rising vaccination rates, which helped instill confidence in reopening businesses, and pent-up demand after months of restrictions and varying shutdowns. Over half of India’s nearly 1.4 billion population is fully vaccinated, with about 20% still awaiting their second shots.
Unemployment rose to nearly 8% in December 2021, a four-month high, according to data from the think tank Center for Monitoring Indian Economy, the Associated Press (AP) news reported.