India's Principal Economic Advisor Sanjeev Sanyal said that the shape of the economic recovery can be best described as a ‘tilted W’, adding that he, along with the best minds in the country, could best come up with this alphabet.
The Indian industry sector saw a graph of downfall and revival during the pandemic phase. Sectors went through contractions and revivals, he said. “In fact, if we go through the quarterly data, (we will see) downturn, sharp downturn, revival, shallow downturn, and flatter, more sustained revival. I scratched my head thinking about what would be a good letter of the alphabet to describe this. After a lot of discussions with the best minds, we thought that the best we could do was a ‘tilted W’. I know it is very awkward and didn’t bother to use it,” he said at a presser following the release of the Economic Survey 2021-22.
Sanyal said the economy has grown past the pre-pandemic level. He added that while sectors like financial, real estate and professional services have gone back to the pre-pandemic level, services sectors focusing on tourism, hotels and travel are still impacted.
He added that the economy is estimated to grow by 9.2 per cent in 2021-22. The Economic Survey also stated that the GDP is likely to grow at 8-8.5 per cent in FY23.
“With the vaccination programme having covered the bulk of the population, economic momentum building back and the likely long-term benefits of supply-side reforms in the pipeline, the Indian economy is in a good position to witness GDP growth of 8.0-8.5 per cent in 2022-23,” stated the report.
Sanyal mentioned that inflation during 2020-21 was because of the lockdowns imposed due to the pandemic. Inflation is now under control, he said.
“The post-Covid world will be influenced by geopolitics, climate change, and supply chain. All these factors will impact our economy,” he said, further adding that Atmanirbhar Bharat is a response to global supply chain disruption.
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Also read: Economic Survey 2021-22: Govt projects 8-8.5% growth in FY23
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