With past trends, aggressive recovery in the economy is of prime concern post any calamity. The impact and the shape of recovery may vary, depending on the initiatives taken by the governments.
With the out-burst of COVID-19, many experts have noted that even with limited resources and poor health infrastructure, India has fought back this menace effectively. What we are experiencing today is new hope and vigor, backed-by coordinated actions of various governments and regulating authorities.
According to the economic survey, it clearly indicates that we are moving towards a V-shaped recovery. Budget presentation has also given the required booster for the same. It is continuously observed that the economy is now bouncing-back forcefully.
Factors like successful control over COVID-19, constant emphasis and support to “Atma Nirbhar Bharat”, stable macroeconomic situation, stable currency, current account position and comfortable FOREX reserves have helped us achieve a massive turnaround in the economy. Along with these factors, we have also recorded the highest GST collection of more than 1.20 crore in the past year.
Budget for 21-22 estimates GDP as high as 11% which is supported by a similar projection given by the World Bank and other international Agencies. Concentration is mainly on increased allocation of budget for healthcare, infrastructure, manufacturing, technology, agriculture, MSMEs, etc. This, when coupled with privatization by diversement in PSU, it will provide wings to economic growth. It is also said that government initiatives will be followed by private investment which together will boost the V-shaped recovery of the economy.
Important steps taken by the government for the ease of doing business like successful initiation of “Production Linked Incentives”, stable tax regime, conducive atmosphere for foreign investment; will provide further stimulation to the economy.
With more and more indicators turning in the favor of the economy, it is definitely a pleasant sight to see that the economy is moving towards a V-shaped recovery.
Disclaimer: The views expressed in the article above are those of the authors’ and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.