The Indian economy has made a remarkable turnaround. It has grown by a little over 20.1 per cent in the first quarter of the present fiscal. During the same quarter last year the economy contracted nearly 25 per cent. It occurred due to the imposition of a countrywide lockdown to prevent the spread of Covid-19 virus. During the second and third quarter too, the Indian economy showed no signs of recovery and many experts predicted that the Indian economy might not recover for a long period from the pandemic-induced recession. But contradicting such observations, the Indian economy showed signs of growth during the last quarter of the last fiscal. Since then, it was largely anticipated that the economy would grow much faster in the 2021-22 fiscal. Thus, when the economy had recorded a growth of 20 per cent, no one was surprised. Rather it is being argued that the country’s economy has the potential to grow at an even faster rate than the unprecedented growth recorded in the first quarter.
During this period, export has recorded a rise of 8.7 per cent and import has fallen by 5.3 per cent. At the same time, the construction sector which was hit hard by lockdown also recorded a near massive growth of 68.3 per cent. Similar is the case of the manufacturing sector too, this sector recorded a growth of 49.6 per cent. These positive figures together have once again put India on the top, reclaiming the spot of the fastest growing economy of the world. It must be mentioned here that during the same period, China recorded nearly nine per cent growth. Thus, it can be surely concluded that the Indian economy is now back on track and it is estimated that by the end of the present fiscal year, India’s GDP growth rate might be in the double digits for the first time.
The credit for this rebound should also be given to India’s success in containing the pandemic. India has overcome the fear of the pandemic much sooner than many other nations. Though initially lacking, India managed to establish a relatively robust health support system in no time. The frontline workers worked overtime to save the lives of Covid-19 positive people. Their success rate is praiseworthy as it injected the much-needed confidence that the lethal virus is not invincible and that it too can be controlled. When people realised that a mere infection by Covid-19 is not the end of the road, economic activities started rolling again. A planned vaccination process has also helped the people become more confident of the fight against Covid-19.
After analysing the result of the first quarter of the present fiscal, it appears that the nightmare is over. We are not far from restoring normalcy. The unprecedented growth will provide a much-needed boost to the country's economy. On the other hand, one should remain vigilant about two things. First and foremost, we should not lower our guard against the deadly virus and secondly, we should not be complacent as a result of this particular achievement as many such achievements are required to earn a coveted place within the world economy.