A further surge in global commodity prices may hit consumption and have serious implications for India’s economy which is still struggling to come out of the Covid-19 impact.
India bounced back big, not yet out of woods; real GDP growth to be 7.5 to 12.5 per cent: World Bank
World Bank economist Hans Timmer said that even with the rebound and there is uncertainty here about the numbers, but it basically means that over two years there was no growth in India.
Speaking at a webinar organised by the Bharat Chamber of Commerce, he said the country needs to keep the growth momentum and it is the only means to create employment and reduce poverty.
Congress' chief spokesperson Randeep Surjewala said the third quarter GDP data proves yet again that fault lines in the Indian economy are more visible than ever before.
This marks a contrast to the improvement in sentiment brought on by the rollout of the Covid-19 vaccine with a handful assessing the ongoing recovery to be fragile in the absence of investments.
The government will release the GDP numbers for the October-December quarter of the current fiscal on Friday.
Analysing the structural tax gap in India, the 15th Finance Commission pegged the shortfall in tax collections to be over 5% of GDP as against its potential.
The survey highlighted how rating agencies have rated India much below expectation on several parameters including GDP growth, general government debt and inflation over a period of two decades.
Downside risks, however, remain due to the spread of a new variant from the UK and fatigue from social distancing guidelines, the Ministry noted.
Sitharaman said that while in early 2020 green shoots and revival signs of the economy were visible, it was upset with the pandemic setting in.
Bangladesh will post the best growth in the region growing at 5.2 per cent on the back of revived exports, said the Asian Development Bank in its Asian Development Outlook.
An analysis of the monthly accounts of 15 states indicates that India’s state governments sharply cut down on spending over the past two quarters.
FDI in India grew by 15 per cent to USD 30 billion during the first half of the current fiscal, according to official data.
Goyal also said the management of the COVID-19 pandemic and gradual unlocks announced by the government have helped in avoiding multiple COVID-19 peaks.
The revision comes as the number of active Coronavirus cases has fallen from a peak of 10 lakh to 4.89 lakh and the economy starts picking up pace after a contraction of nearly 24 per cent.