Categories: Economy

India Inc says economic growth may not be significantly impacted though minor supply-side glitches may surface

<p>
<strong>India Inc is not overtly worried despite the spike in fresh Covid 19 cases in India in the last few days though “some minor supply side glitch” cannot be ruled out.</strong></p>
<p>
While the aviation, hospitality and tourism sectors would be impacted, the other industries are likely to sail through this period as reports suggest that the current wave will not only be short-lived but with a large section of the population being inoculated, the infection this time could be milder.</p>
<p>
“We are more matured in dealing with the virus now, we are aware and prepared now, so I don’t see this impacting the economy very significantly,” Deepak Sood, secretary general, Assocham, told India Narrative.</p>
<p>
Authorities have indicated that despite the surge in numbers, there will be no national lockdown. “We do not anticipate any national lockdown but Covid related restrictions have started kicking in and going forward, there could be measures which would be local in nature depending on the virus situation and case load,” an insider said.</p>
<p>
<strong>Also read: <a href="https://www.indianarrative.com/economy-news/tourism-and-hospitality-sector-may-take-a-little-longer-to-recover-but-overall-growth-story-may-not-be-impacted-despite-rise-in-covid-numbers-139572.html">Tourism and hospitality sector may take a little longer to recover but overall growth story may not be impacted despite rise in Covid numbers</a></strong></p>
<p>
Sood, however, added that the situation is an unfolding one.</p>
<p>
Most projections had until now shown a rapid turnaround in the Indian economy. According to a recent report by British firm Cebr, India, which is the fastest growing economies among the G20 nations, is set to overtake the French economy in 2022 and Britain by 2023.</p>
<p>
The surge in the Omicron variant of the virus has forced several states to take precautionary measures. Maharashtra, Delhi, West Bengal among others have already announced night curfews and restricted gatherings. Schools and colleges have been shut.</p>
<p>
“The government will do the needful but the economic growth story will remain in-tact as the economic recovery is on fast track. All steps will be taken to ensure that a conducive business environment is maintained and any bottlenecks in case of supply side, will be taken care of,” Gopal Krishna Agarwal, BJP’s national spokesperson on economic affairs said.</p>
<p>
He added that the government will pursue more reform measures that would push growth in a more sustained manner.</p>
<p>
While the strong base effect in the first two quarters of 2021-22 due to a contraction in the corresponding period of 2020-21 helped push growth, the advantage will erode in the subsequent quarters. The economic indicators of the third and the fourth quarters in the current fiscal and the next financial year will reflect the real growth story.</p>

Mahua Venkatesh

Mahua Venkatesh specialises in covering economic trends related to India and the world along with developments in South Asia.

Recent Posts

IIT Guwahati develops low-cost water treatment system to remove fluoride, iron

The Indian Institute of Technology (IIT) Guwahati researchers have developed a community-scale water treatment system…

16 minutes ago

Union Minister Bhupender Yadav chairs workshop on Management of Human-Wildlife Conflict

Union Minister for Environment, Forest and Climate Change, Bhupender Yadav on Friday chaired an Interactive…

1 hour ago

Rights body VBMP demands immediate release of Baloch students amid widespread condemnation of enforced disappearances

The Voice for Baloch Missing Persons (VBMP) has demanded the swift release of two Baloch…

2 hours ago

Israeli fighter jets strike missile manufacturing industrial sites in Iran: IDF

The Israeli Defence Forces shared that on Thursday night it targeted the missiles manufacturing sites…

4 hours ago

Bihar: PM Modi to flag off Vande Bharat Express from Patliputra to Gorakhpur, unveil Rs 9,300 crore projects

Prime Minister Narendra Modi is set to flag off the Vande Bharat Express connecting Patliputra…

5 hours ago

World Economic Forum report praises India’s efforts in shaping global energy transition

Ranked 4th among the world's five largest economies, India holds a critical position in shaping…

5 hours ago