Revival of Indian Economy
03/03/2021

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Context

After two quarters of a sharp contraction, now India’s GDP is rising by 0.4% and GVA by 1%.

More on news
  • Now, most of the economy sectors like manufacturing, construction is showing growth trend.
  • The spending on public administration, defence and other services is getting decreased.
  • Also, other sectors like retail, trade, hotels, transport and communication contracted by 7.7%.
Concerns
  • Growth numbers alone may still not be capturing the tumult faced by swathes of informal and micro-enterprises, nor do they reflect a recovery in the job market.
  • The second wave of infections in industrial hotspots such as Maharashtra, and the risk of infections rising in poll-bound States, do not bode well either for services or the fragile recovery in manufacturing.
Way Forward
  • The continuing stress in employment- and contact-intensive services sectors is a worry, and the government must consider support measures.
  • A smooth and expeditious roll-out of the vaccine, with the private sector drafted in to achieve scale, is an imperative to help India navigate the bumps ahead more deftly.
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