India’s economy has grown significantly apart from the three key Covid-19 waves, the US Treasury said in a report to Congress. India’s second worst wave of heavy-duty growth by mid-2021, delayed its economic recovery, the Treasury said in an annual report.”However, economic activity has grown significantly in the second half of the year as India’s vaccination rolls have increased,” Treasury said on Friday, praising India’s efforts to vaccinate.
By the end of 2021, about 44 percent of India’s people had been completely vaccinated, it said.After securing a seven per cent contract in 2020, the result returned to pre-epidemic levels by the second quarter of 2021, with a full 2020 growth rate of 2021, he added.
Since the beginning of 2022, India has experienced the third major outbreak driven by the Omicron divergence, but the death toll and the general economic downturn are limited, it said. The Indian government has continued to provide financial support to the economy compared to the 2021 epidemic, it said. Officials estimate that the total deficit will reach 6.9 percent of GDP for the 2022 financial year, which is more than the deficit before the epidemic, it said.
According to the Treasury, the Reserve Bank of India has kept its key policy values ​​unchanged by 4% since May 2020, but in January 2021 began gradually reversing the dramatic spending patterns designed to support growth during the early coronavirus epidemic.After recording the current account revenues of 1.3 per cent GDP in 2020, the first surplus since 2004, India has returned to the current account deficit of 1.1% of GDP in 2021. is short of Indian trade, which has grown to USD 177 billion by 2021 from USD 95 billion last year, it said.
In addition, imports increased sharply in the second half of 2021 amid economic stagnation and rising commodity prices, especially electricity prices, which led to a 54 percent annual increase in exports by 2021.India’s exports also increased by 2021, although they were lower than imports, rising by 43 percent, it said.It said India’s gross domestic product (3.3 percent GDP) and revenue (1.3 percent GDP) partially reduced short-term capital shortages.Exports grew by about 5 percent by 2021, reaching USD 87 billion, or 2.8 percent of GDP, the Treasury said that by 2021, India’s foreign position was broadly in line with the desired economic bases and policies, at the current rate. an account gap of 0.3 percent of GDP.
According to the report, the trade balance between India and the United States has grown significantly over the past year. Between 2013 and 2020, India spent about $ 30 billion in trade on goods and services with the United States.By 2021, gross trade for goods and services reached USD 45 billion, which is a significant increase from USD 34 billion in four quarters until December 2020. India’s gross trade revenue reached USD 33 billion (an increase of 37 percent ), and the remainder of the services of the two countries. has grown to USD 12 billion (up 29 percent) by 2021.
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