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Omicron variant may become a crisis in the path of recovery of the Indian economy: Finance Ministry report

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Omicron variant may become a crisis in the path of recovery of the Indian economy: Finance Ministry report

Economic growth rate may be affected amidst the threat of Omicron variant

New Delhi:

COVID-19 new Variant Omicron A new crisis may arise for the improvement in the global economy. The Finance Ministry has said this important thing in its latest Monthly Economic Review Report (November) released on Saturday. However, the Monthly Economic Review report states that as per preliminary estimates, the Omicron variant is expected to have little impact due to the increasing pace of vaccination in India. GDP figures have been released. Accordingly, the economy has crossed the level before Corona.

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According to the Ministry of Finance, the growth rate of GDP in the second quarter of the financial year 2021-22 has been 8.4% and the economy has progressed in the second quarter of this year as compared to the second quarter of 2019-20, that is, crossing the level before Corona. It’s over. Now it is expected that this trend will continue throughout the current financial year (FY 2021-22) as well.

The Monthly Economic Review Report (November, 2021) states that the pressure on inflation is expected to ease in the coming months due to reduction in tax and duty on petrol and diesel by the central and state governments in the coming months.

On the other hand, rating agency Fitch has reduced India’s GDP growth rate estimate to 8.4 percent for the current financial year. He did this considering the revival was less than expected after the second wave of the corona pandemic. However, Fitch has raised the GDP growth forecast for the next financial year to 10.3 percent.

Fitch had earlier in October projected GDP growth at 8.7 per cent in FY 2021-22 and 10 per cent in FY 2022-23. At the same time, Swiss brokerage firm Credit Suisse has predicted a GDP growth rate of 9 percent in the next financial year. It has estimated the GDP rate for the current financial year to be around 10.5 percent. This is much higher than the average estimate of 8.4-9.5 per cent of other agencies.

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