However, let us know that on Wednesday, Reserve Bank Governor Shaktikanta Das addressed the media and said that RBI does not think there will be any deviation due to this wave in the growth estimate of April 2021. He had said that detailed and swift steps need to be taken to stop the spread of Corona and the Central Bank is keeping an eye on the rapidly changing situation.
Some special features of the Finance Ministry report-
– Due to the second wave of corona in April, the pace of economic recovery has slowed down since the first wave.
– The second wave has created downside risk (risk of loss on future profit) for the first quarter of FY 2021-22. During this time, economic activity may slow down.
– However, the agricultural sector is giving some hope. The record grain production and the forecast of normal monsoon in the coming crop year has given little support to the economy.
– At the same time, indicators of rural demand are also showing good symptoms. According to the report, the growth of tractor sales has been recorded at the rate of 172 percent and 36 percent, which is more than the rate of March 2020 and March 2019 respectively.
– Mixed trends have been seen in industrial production. The index of industrial production (IIP) in February 2021 has been 3.6 per cent year-on-year. In January 2021, it was 3.9 per cent. In eight-core industries, it was 6.8 per cent in March 2021, up from 11.1 per cent in February, 201.
Due to the increasing cases of corona and lockdown in the country, the economic crisis remains in 2021 as well. CMIE, in its latest report released this week, has claimed that in the month of April this year, compared to March, 70 lakh people have lost their jobs. Obviously, the crisis in Corona is again deepening on the economy.