Indian Economy Recovered Strongly Despite COVID-19 Pandemic: US Treasury Report

India’s economy is turning around in the face of the Corona supermarket. That’s according to a report presented to the US Congress on Friday. Fascinated by India’s economic growth, Joe Biden, the government’s finance minister, said that despite the slowdown in growth in FY 2020-21, India was able to recover in FY 2021-22.

Even after the second wave of Corona, India was able to revive its growth rate in the second half of the year, according to the US Treasury Department’s half-yearly report. The report also praised the progress of immunisation programs in countries with large populations like India. It has been said that despite the outbreak of infection due to Omicron earlier this year, the Indian economy has been able to avoid that flame.

Since the beginning of 2022, India has faced a third major outbreak driven by the Omicron variant, but the number of deaths and the wider economic downturn has been limited, it said.

Last month, the United Nations’ World Economic Situation and Prospects-2022 report predicted that India’s economic growth rate could reach 6.4 percent in 2022, despite the impact of the corona. Last week, the World Bank released a report on ‘Global Economic Prospects’.

The return to the current account deficit was driven by the sharp decline in India’s trade deficit, which widened from 95 billion a year earlier to 177 billion in 2021, it said.

According to the report, India’s economic growth rate for the current fiscal year 2022-23 could be 7.5 percent. According to a report submitted to the US Congress, India will be able to keep its fiscal deficit at 6.9 percent of gross domestic product (GDP) in the current financial year.