“After battling a historic pandemic in FY21, the Indian economy is poised to build back better and stronger as is reflected in the movement of several high-frequency indicators,” according to the monthly economic report of the finance ministry.
The report by the finance ministry’s department of economic affairs said instrumental in this resilient comeback will be a strong revival in investment growth supported by the Atmanirbhar Bharat Mission and a massive boost to infrastructure and capital expenditure provided for in the budget 2021-22.
The wheels of India’s capex cycle have been set into motion, signs of which are imminent in the second half of the year, it said.
“As the vaccination drive continuously upscales in India and guided by the learnings of India’s successful management of pandemic during its first wave, India is now well-armed to combat any downside risk posed by the recent surge in Covid cases,” the report said.
The Indian economy, which has been hit hard by Covid, has recovered sharply and most economists expect it to record double digit growth in the current fiscal year that began in April.