In a fresh assessment after the quarterly GDP recorded 23.9 per cent contraction, a Finance Ministry report on Friday showed optimism by claiming that a V-shaped recovery is taking place.
But, in the same breath it noted the risks of an apparent disconnect between the real and financial sectors.
According to the Monthly Economic Report of Department of Economic Affairs, the world after Covid-19 will be different with structural changes in production, consumption and work patterns.
As India emerges from this crisis, it will be critical to re-orient the country’s policy matrix towards a calibrated reconstruction of the economy and building resilience for an uncertain future.
“Some areas that may require specific attention include agrarian supply chains, factor markets, infrastructure, ICT, start-ups, financial inclusion, skilling and healthcare. Progress in these areas will sustainably boost economic growth in years to come,” it said.
7-point agenda
While it highlighted performance of 15 high frequency indicators, the report presented a seven-point agenda to meet economic challenges ahead.
These include enhancing resilience of India’s agriculture, building efficient and sustainable agrarian supply chains, deepening structural reforms in factor markets and boosting infrastructure to reignite manufacturing.
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