‘Vaccination critical for opening up economy, Omicron casts a major shadow on tourism’: Economic Survey

Over 88 crore of people (93% of the adult population) received at least one dose, while around 66 crore people (70%) was fully vaccinated.
Image used for representational purpose only. (File photo | AP)
Image used for representational purpose only. (File photo | AP)

NEW DELHI: Emphasising that vaccination is critical for opening up the economy, the Economic Survey noted that the average daily vaccination rate increased four-fold from 19.3 lakh in May 2021 to 75.4 lakh in January 16.

“Vaccination is not merely a health response but is critical for opening up the economy, particularly contact-intensive services. Therefore, it should be treated for now as a macro-economic indicator,” it said.

India crossed the milestone of administering 156 crore-plus doses of vaccines on January 16.

Over 88 crore of people (93% of the adult population) received at least one dose, while around 66 crore people (70%) was fully vaccinated. Similarly, over 50 per cent of the 15-18 year age group were jabbed with first dose till January 19. As many as 56.66 lakh precautionary or booster shots were logged in the
same period.

Quickening the pace of vaccination across states and all age groups was possible because of easy access and pricing, the government said.

“The Covid vaccination has played a critical role in minimising loss of lives and boosting confidence in the economy towards the resumption of activity and containing the sequential decline in output due to the second wave.”

The vaccination drive continues to gather speed and breadth with the number of days taken to achieve an additional 10 crore doses reducing significantly from 86 days during the initial phase to 15 days, it added.

India rolled out vaccination on January 16, 2021, with the target to inoculate its eligible population by December 2021, with at least the first dose. The second phase started on March 1 (for above 60 years) and April 1, 2021 (from 45-59 years) making all persons aged 45 years and above eligible for vaccination.

The trajectory of the tourism sector, especially international tourism, remains uncertain due to the spread of the Omicron variant of COVID-19, according to Economic Survey 2021-22.

The pandemic has had a debilitating impact on world travel and tourism everywhere, including India, and the resumption of international tourism will continue to depend largely on a coordinated response among countries, said the Survey.

Nations will need to coordinate in terms of travel restrictions, harmonised safety and hygiene protocols and effective communication to help restore consumer confidence.

"At the time of writing, new restrictions were being introduced worldwide due to the spread of the Omicron variant of the COVID-19. Thus, the trajectory of the tourism sector, especially international tourism remains uncertain," according to the pre-Budget document tabled in Parliament by Finance Minister Nirmala Sitharaman on Monday.

Citing the World Tourism Barometer of the United Nations World Tourism Organization (January 2021) data, the Survey said that international tourist arrivals (ITA) declined 74 per cent globally in 2020 over the previous year, with restrictions on travel, low consumer confidence and a global struggle to contain the spread of COVID-19.

ITA had reached a total of 1.5 billion in 2019, and reduced to 381 million in 2020, leading to an estimated loss of USD 1.3 trillion in export revenues, it added.

"This weakness in international tourism has continued in 2021. During January-September 2021, ITA worldwide was 20 per cent lower than the same period in 2020 and 64 per cent below 2019 levels," the Survey said.

India had also taken measures to contain the spread of the virus, including suspension of all commercial international flights in March 2020.

The restriction has been extended till February 28, 2022.

Health SPENDING up

With the pandemic raging in the country, the health sector’s expenditure rose by 73% from Rs 2.73 lakh crore in 2019-20 to Rs 4.72 lakh crore in 2021-22.

(With PTI Inputs)

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