Centre announces India on its path to becoming world's fastest-growing major economy
The Economic Survey 2020-21, released in January of this year, predicted GDP growth of 11% for the current fiscal year, which ends in March 2022.
According to a finance ministry assessment, India is on its path to becoming the world's fastest-growing major economy, armed with the requisite macro and local growth factors.
According to the ministry's monthly Economic Review, rapid immunisation and crowded festivals would propel India's continuing recovery, narrowing demand-supply imbalances and more employment prospects. It noted that the Aatmanirbhar Bharat Mission, which encompasses fundamental structural changes, continues to play an essential role in defining India's economic recovery, both through signalling business possibilities and expanding spending channels.
"With the key macro and micro development drivers in place, the scene is set for India's investment cycle to jumpstart and catalyse its recovery toward becoming the world's fastest-growing economy," it added. The Economic Survey 2020-21, released in January of this year, predicted GDP growth of 11% for the current fiscal year, which ends in March 2022.
According to the Survey, GDP will be aided by a supply-side boost from reforms and regulatory ease, a stimulus for infrastructure projects, and a boost to the manufacturing sector via Production-Linked Incentive programmes due to abundant liquidity and low loan rates. As per the Confederation of All India Traders, India's economic recovery gained traction during the festival season, with Diwali sales reaching a decade high of 1.3 lakh crore.
The improving COVID-19 position and strong business and consumer spirits resulted in a prolonged economic rebound in October 2021. According to the report, the global economic recovery is still being hampered by persistent supply bottlenecks and input cost increases. Nonetheless, the IMF's October 2021 update anticipates improved global growth prospects of 5.8% in 2021 and 4.9% in 2022, resulting in coterminous global trade growth of 9.7% and 6.7%, respectively.