Economy

Economy in better shape than during 2020’s COVID-19 wave: CEA

Remain on guard: People should be careful and follow all regulations, says the CEA.   | Photo Credit: Emmanual Yogini

The Indian economy is in a better shape as compared to the previous COVID-19 wave witnessed last year because of vaccines, Chief Economic Adviser (CEA) K. V. Subramanian said on Friday.

“There is a second wave therefore people should be careful about it and follow all regulations,” he said, speaking at an event organised by Amazon. “But overall compared to previous episode, we are in a better shape because vaccine is out and vaccination drive is proceeding. So uncertainty is much lower,” the CEA added.

Following the outbreak of the pandemic in 2020, India went in for one of the strictest lockdowns, leading to a massive contraction of about 24% in GDP.

Beginning March this year, the second wave started rearing its head with a sudden jump in cases, forcing many States to go for localised restrictions. India added a record 2,17,353 new coronavirus infections in a day, according to the Union Health Ministry data updated on Friday. This is the second consecutive day that the country has reported over two lakh cases.

The CEA said “one key thing that stood out during this pandemic is the rollout of e-commerce and digitisation, something that India has embraced.” As many as 800 million people were provided essential supplies through the public distribution system and cash transfer through the Jan Dhan, Aadhaar, Mobile (JAM) with a click of button, while most advanced countries like the U.S. provided financial support to its citizens by issue of cheques implemented over two months, he added.

“I think Indian economy is really equipped very well to usher in the significant growth that is happening in e-commerce,” he said.

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Printable version | May 9, 2021 11:19:42 AM | https://www.thehindu.com/business/Economy/economy-in-better-shape-than-during-2020s-covid-19-wave/article34338820.ece

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