Several big challenges lie ahead for the Narendra Modi government as India prepares to step into 2022: A new wave of Covid, maintaining macroeconomic stability and furthering the reform process to keep growth on a path to recovery.
Omicron
With another wave of Covid expected to hit India, the damage to life and livelihoods is expected to be lower this time due to vaccination, higher levels of immunity and our increased ability to cope.
Early this year, the Indian economy was gradually recovering until the severe second wave hit the brakes. But as the pace of vaccinations picked up and restrictions began to be lifted, economic recovery gained momentum.
The second wave was much more severe than the first, but its economic impact was primarily limited to the April-June quarter. While real GDP in the quarter was 9.2 per cent lower than its pre-Covid levels, it attained the pre-Covid levels in the September quarter.
Hopefully, even though Omicron spreads much faster, our ability to cope has increased and the economy will be less affected this time.
Read More at https://theprint.in/ilanomics/keep-calm-continue-reform-mantra-for-modi-govt-and-rbi-as-indian-economy-braces-for-2022/791797/
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