Most sectors of economy on way to reach pre-pandemic levels, surpass them says NCAER


Photo:PTI

Rapid recovery in most parts of economy: NCAER

New Delhi. The prestigious economic research institute NCAER said on Thursday that there are signs of a sharp recovery in the economy. Most sectors are nearing pre-pandemic levels and are ready to overtake them. The National Council for Applied Economic Research (NCAER), in its monthly review of the economy, said, “Better than anticipated fiscal results, buoyancy mostly in high-frequency indicators (GST collection, power consumption, freight etc.) and policy decisions including privatization of Air India.” The economic news is favorable with the reforms.

The review said that economic activities are steadily returning to normal with the spurt in vaccination and decline in Kovid-19 infection. According to the report, “With the economy expected to grow at 9.5 per cent (RBI estimate) this year, most sectors are on track to reach pre-pandemic levels and then surpass those levels.” The agriculture sector, unaffected by the pandemic, is said to be growing at its long-term average rate, while the manufacturing sector looks set to make up for the loss. NCAER said that the slowest pace of recovery in the services sector, which is most affected by the pandemic.

After announcing the results of the monetary policy review meeting earlier this month, Reserve Bank Governor Shaktikanta Das had said aggregate demand improved in August-September, and it was due to railway freight traffic, port goods, cement production, electricity demand, Appears in e-way bill, GST and toll collection. Retaining the real GDP growth forecast for 2021-22 at 9.5 per cent, he said, “Increasing cost of production on profit margins, likely global financial situation, volatility in commodity markets and increasing COVID-19 infection, etc. However, there may be risks to the growth forecast.”



Source link