India's economic recovery is likely to pick up steam in the second half of this year: Finance Ministry


Posted on 11 December 2021


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Following the 8.4% GDP growth in Q2, India's economic recovery is likely to pick up steam in the second half of this year, according to the Finance Ministry, which cited preliminary data suggesting the Omicron strain of COVID-19 poses a 'less severe' risk. The ministry emphasised that India is one of the few countries to have grown for four consecutive quarters during COVID-19, and that the country will recover to pre-pandemic levels of economic activity for the entire year 2021-22. The Department of Economic Affairs (DEA) said in its monthly economic review for November that a revival in services, combined with a full recovery in manufacturing and sustained growth in the agriculture sector, helped boost GDP output in the second quarter to more than 100 percent of pre-pandemic levels in 2019-20. The Consumer Price Index, which tracks retail inflation, will be released by the National Statistical Office on Monday. In the first week of that month, the Centre announced duty reductions on petrol and diesel.


Key Points


  • Following the 8.4% GDP growth in Q2, India's economic recovery is likely to pick up steam in the second half of this year, according to the Finance Ministry, which cited preliminary data suggesting the Omicron strain of COVID-19 poses a 'less severe' risk. 

  • The Consumer Price Index, which tracks retail inflation, will be released by the National Statistical Office on Monday. In the first week of that month, the Centre announced duty reductions on petrol and diesel.