Post-Pandemic Economic Recovery
By : Neha Dhyani
Updated : Mar 2, 2023, 16:56
The pandemic was harsh on the economy. The global economy was picked with burden and was distressful. Waves of infection, supply-chain disruptions, and inflation are making policymaking difficult.
The challenges are problematic, but the Government of India has decided to bounce back to cushion the impact on vulnerable segments of society and the business sector.
It then significantly increased infrastructure spending to bolster medium-term demand and aggressive supply-side measures to position the economy for long-term growth showing signs of Post-Pandemic Economic Recovery.
Post-Pandemic Economic Recovery - Sectoral Trends
- The construction sector has bounced back due to the rapid requirement of the infrastructure and housing cycle
- The steel consumption and its production are reviving to normalcy
- The data from RBI shows that there are serious chances of drastic revival in 2021 with the increase in sales and prices in real estate agencies
- Distance-enabled services have become the new normal, and much-added importance is given to remote interfaces for office work, education, and even medical services
- Exports of software and IT-enabled services have increased, despite a sharp decline in tourism earnings
- The industrial sector experienced a significant swing, first contracting by 7% in 2020-21 and then expanding by 11.8 per cent this fiscal year
- The manufacturing, construction, and mining sub-sectors all experienced the same consequences
- The utility sector experienced a silent cycle because basic services such as electricity and water supply were maintained even during the national lockdown
- The contribution of industry to GVA is now estimated to be 28.2 per cent
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Post-Pandemic Economic Recovery - Investment
- The growth in investment has risen to above 15%, which is almost equal to pre-pandemic levels
- The government policy has turned out to be a big advantage. Capital spending on infrastructure has raised the GDP ratio to 29.6 per cent in recent years, the highest in seven years
- While private investment recovery is still in its early stages, there are numerous signs that India is poised for increased investment
- Over the years, the number of personal investment projects in the manufacturing sector has increased
- A solid and clean banking sector is ready to support private investment adequately
- The anticipated increase in private consumption will drive capacity utilization, fueling private investment activity
- The recent survey from RBI depicts positive influences on investments and production expansion in the coming quarters
Post-Pandemic Economic Recovery - Exports and Imports
- So far in 2021-22, India's exports of both goods and services have been exceptionally firm
- Regular constraints in shipping vessels, the obstruction in the Suez Canal, and the Covid-19 pandemic failed to be an obstacle to merchandise export for eight consecutive months
- Net service exports have increased dramatically due to professional and management consulting, audiovisual, freight transport, telecommunications, computer, and information services
- According to a report, India's export has increased to 16.5%, a much higher percentage than before the pandemic
The Post-Pandemic Economic Recovery is striving relentlessly towards better. The Government and the citizens have to work together to bring back the economy's strength. It requires further cooperation and relentless team effort from the whole community to acquire Post-Pandemic Economic Recovery successfully.
FAQs on Post-Pandemic Economic Recovery
Q1. What is the current economy of India when it comes to Post-Pandemic Economic Recovery?
Fitch forecasts India's real GDP growth will be 8.4 per cent in 2021-22 and 10.3 per cent in the following fiscal year, as the economy recovers from the pandemic-induced slowdown in 2020-21.
Q2. How has inflation affected the Post-Pandemic Economic Recovery in India?
According to the Monetary Policy Committee (MPC), inflation has remained chiefly within the tolerance threshold of the central bank. Unlike many Western countries, no over-stimulus has been noticed during the Post-Pandemic Economic Recovery due to inflation in India.
Q3. How is India's national income measured in the Post-Pandemic Economic Recovery?
In the Post-Pandemic Economic Recovery, India's national income is measured by product, revenue, and expenditure methods.
Q4. Who published the Economic Survey of India regarding the Post-Pandemic Economic Recovery?
Ministry of Finance published the Economic Survey of India regarding Post-Pandemic Economic Recovery.