The Indian economy had been the most critically-affected patient of the Corona Virus Pandemic in 2020. The economy which had already lost the tag of fastest-growing economy in Financial Year 2019, was already creeping slowly on the path of downfall when the pandemic hit. Fanning the flames, the world’s largest lockdown in the country pushed the economy into a technical recession. With the beginning of a New Year, all eyes are on the ruling party as to what steps will be taken to afloat a drowning economy.
According to experts, India may record the fastest GDP growth in history, in 2021. NITI Aayog Vice-Chairman Rajiv Kumar in a recent conversation with ANI said that the country’s economy will grow at 10 percent in 2021-22 in real terms. “By the end of next year, we will reach pre-COVID level. Growth will be positive in the fourth quarter of 2020-21,” Kumar added. Nomura, a Japanese financial holding company, has also predicted that the Indian economy will grow by 9.9 percent in 2021.
The country is also set in the direction to revive its economy, with phase-wise unlock in process and the numerous schemes launched by the Prime Minister to give a boost to various sectors. Until now, the government has launched 3 Atmanirbhar (Import substitution) stimulus packages. Stimulus package 1 is worth 20 lakh crore, package 2 is worth 2.65 lakh crore and package 3 is worth 2.6 lakh crore. The packages are supposed to give a thrust to different sectors of the economy as relief measures, which include- Rs 3lakh crore financial support for MSME sector, Rs 6750 crore relief to employers and employees, liquidity boost given to NBFCs, HFCs and MFI, Financial Aid worth Rs 90,000 Cr to DISCOMs, Rs 1.46 Lakh boost to the manufacturing sector.
An additional outlay of Rs. 10,000 Cr under PM Garib Kalyan Rozgar Yojana has also been given. The manufacturing sector will boom in India in 2021, but a lot depends on consumer spending as well. Opposing this some economists also believe that post-COVID, India will be lucky to achieve 4-5% growth.