India on track to become the world’s fastest growing economy: Center

New Delhi: Armed with the necessary macro and micro growth engines, India is on track to become the fastest-growing major economy in the world, according to a report from the Ministry of Finance.

Rapid vaccination and abundant festivities will fuel India’s ongoing recovery, resulting in reduced supply-demand mismatches and increased employment opportunities, according to the monthly Economic Review prepared by the ministry.

“The Aatmanirbhar Bharat Mission, which summarizes major structural reforms, continues to play a critical role in shaping India’s economic recovery, both through signaling business opportunities and expanding spending channels.

“Armed with the necessary macro and micro growth engines, the stage is set for India’s investment cycle to kick in and catalyze its recovery to become the fastest growing economy in the world,” the review said.

The Economic Survey 2020-21, released in January this year, had projected 11% GDP growth during the current financial year ending March 2022.

The Survey had said that growth will be supported by the impulse in supply from reforms and relaxation of regulations, impulse by investments in infrastructure, the impulse to the manufacturing sector through incentive schemes linked to production (PLI), recovery repressed demand, increased consumer discretionary after the deployment of vaccines and recovery of credit given adequate liquidity and low-interest rates.

India’s economic recovery picked up steam in the holiday season, recording a decade of Diwali sales of Rs 1.3 million lakh crore, according to the Confederation of Traders of India.

The improvement in the COVID-19 situation amid high consumer and entrepreneurial spirit also generated a sustained economic recovery in October 2021. However, the global economic recovery continues to be impacted by prolonged supply restrictions and inflation. of input costs, he said.

However, the IMF, in its October 2021 update, forecasts better world growth prospects of 5.8% in 2021 and 4.9% in 2022, which will trigger simultaneous global trade growth, by volume, of 9.7% and 6.7%, respectively.

The World Trade Organization’s October forecast also confirms favorable trade prospects supported by a resurgence in global economic activity and the spread of vaccines.

This bodes well for India’s export performance in the near future, giving credit to the IMF which projects that India will become the fastest growing economy, among major countries, in the current year and next. .

The agricultural sector continues its strong presence in the economic recovery with a larger Rabi planting area, better reservoir levels, and adequate availability of fertilizers and seeds guaranteed by the government, he said.