India’s finance ministry said in its monthly economic review for December that the country’s economy is ‘riding against’ the COVID-19 wave as reflected in the declining number of new cases as well as a V-shaped economic recovery, but the spread of the new mutation of the virus, first reported in the United Kingdom, poses a key downside risk.
The improvement in the high frequency indicators raises optimism that economic performance will be much better in the second half of the current fiscal.India's finance ministry said in its monthly economic review for December that the country's economy is 'riding against' the COVID-19 wave as reflected in the declining number of new cases as well as a V-shaped economic recovery, but the spread of the new mutation of the virus, first reported in the United Kingdom, poses a key downside risk.#
“The effective management of COVID-19 spread despite the festive season and onset of winter season, combined with sustained improvement in high frequency indicators and V-shaped recovery along with easing of lockdown restrictions distinguish Indian economy as one riding against the COVID wave,” the report said.
“The management of the COVID-19 spread has been effective despite the festive season and onset of winter season. The downside risk, however, remains the spread of the UK variant and fatigue from social distancing guidelines,” it added.
The economy reported its sharpest economic contraction of 23.9 per cent in the April-June quarter before improving marginally to report a contraction of 7.5 per cent in the July-September quarter.
Fibre2Fashion News Desk (DS)
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