India is among the few countries that have recorded growth in economy in four consecutive quarters amid Covid-19 reflecting the resilience of the Indian economy. In its monthly Economic Review for November, Finance ministry said the real GDP in the second quarter of this financial year has grown by 8.4 percent. The recovery was driven by a revival in services, full recovery in manufacturing and sustained growth in agriculture sectors.
The Ministry said, the recovery suggests kick-starting of the investment cycle, supported by surging vaccination coverage and efficient economic management activating the macro and micro drivers of growth. India’s economic recovery is expected to gain further strength in the remaining quarters of the financial year.
The report said, a new variant of COVID-19 Omicron may pose a fresh risk to the ongoing global recovery. It said, India’s recovery is aided by rapid vaccination covering with at least one dose more than 90 percent of adult population.
The agriculture sector has been the foundation on which economic contraction in India was minimized in the last financial year and recovery sped up in the current financial year.
The Ministry said, healthy progress in sowing and adequately filled reservoirs have ensured rich harvest and rising production of food grains. With record procurement in recent years, central pool stocks have burgeoned and currently stand at 2.73 times the buffer norms, enabling smooth distribution of foodgrains under the Pradhan Mantri Garib Kalyan Anna Yojana, benefitting more than 80 crore people.