Long-term efforts are needed to increase the growth rate ...

According to the latest data released by the Office for National Statistics, in the first quarter of the current fiscal year 2021-22, i.e. April to June, the gross domestic product (GDP) has shown a growth rate of 20.1 per cent. For the first time, the growth rate has increased by more than 20 percent. GDP had declined by 25.4 per cent in the same quarter last fiscal, 2020-21.

Notably, the manufacturing sector grew by 49.6 per cent in the first quarter of the current financial year 2021-22. Construction saw an impressive growth of 68.3 per cent. Business, hotels and transportation grew by 34.3 per cent, while financial, real estate and business services grew by 3.7 per cent in the first quarter. Agribusiness-related activities grew by 4.5 per cent.

Certainly GDP figures show a sharp recovery in the economy. The first quarter of the financial year 2021-22 was the time when the second deadly wave of Kovid-19 epidemic hit the country and

Collapsed. But this time there was no nationwide lockdown. Steps like lockdown were taken at the regional level. At the same time, several important supply chains remained operational. In such a scenario, India has become the fastest growing country among the Group-20 countries. By next year, India's growth rate could reach pre-epidemic levels.

In the first quarter of the current fiscal year 2021-22, four factors have been identified to boost GDP amid the economic difficulties created by the Corona transition. One, substantial growth in agriculture, foodgrain production and record agricultural exports. Two, foreign exchange reserves reached record highs. Three, foreign direct investment. Fourth, the rapidly growing stock market.

Certainly, the country's agricultural sector has reaped the benefits of pursuing it with high priority. It is clear that the growth rate of the agricultural sector has been steadily increasing over the last three years. It was 3.3 percent in the first quarter of 2019-20. 3.5 percent in the first quarter of last year and 4.5 percent in the first quarter of this year. Exports from the agricultural sector have also increased rapidly. Despite the Corona disaster in 2020-21, the country's total foodgrain production is estimated at 308.6 million tonnes, higher than last year's total production of 297.5 million tonnes. Not only that, but India has emerged as a consistent and reliable exporter of food to the world. During the last fiscal year 2020-21, the country exported आणि 41.25 billion worth of agricultural and allied products. This is 17.34 per cent higher than the 35.15 billion in the same period a year ago.

The increasing inflow of foreign investment in the country has also helped in increasing the growth rate. Despite the sharp decline in world economies in the April-June 2021 quarter, foreign investors preferred India to foreign direct investment. At the same time, India's foreign exchange reserves have increased, noting that as per the RBI report, the country's foreign exchange reserves reached a record high of 16 616.89 billion on August 20, making India the world's fourth largest holder of foreign exchange reserves. Although India's global economic credit has increased due to its huge foreign exchange reserves, there is no doubt that these reserves can meet the country's import needs for more than a year. Now the country's foreign exchange reserves have become an important part of the country's international investment status. Foreign exchange reserves have grown rapidly over the past five years.

There is no doubt that the stock market has also made a significant contribution to GDP growth. The stock market has grown rapidly in the first quarter of 2021-22. Compared to many other countries in the world, India's stock market seems to be taking a leap forward. On August 31, the Bombay Stock Exchange (BSE) Sensex closed at 57000 for the first time. The stock market is competing for an IPO. The participation of small investors in the stock market has increased rapidly. The number of demat accounts in the country has crossed 6.5 crore.

Undoubtedly, according to the GDP data for the first quarter of the current financial year, the economy has started to improve due to the economic adaptation to the challenges of Kovid-1 of. There is a glimmer of optimism from the April-June 2021 quarterly components. GST collection in August 2021 is Rs 1.12 lakh crore. Significant progress is being made in various key sectors of the economy, such as power and manufacturing. Sales of commercial vehicles and consumption of steel have also improved.

Fear of a third wave of Covid-19 poses economic and industrial challenges. In such a scenario, more strategic efforts are required to increase the growth rate in the current financial year. Due to the lack of monsoon rains in the country as expected, the focus is now on kharif crops, which will continue to boost agricultural GDP. It should also be noted that at this time the corona vaccination target should reach as many people as possible. Inflation needs to be reduced to boost private consumption and consumer confidence. We have to consider reducing taxes on petrol and diesel. The private sector needs special incentives to increase investment. The cost perception of the people of the country should be improved. In order to boost the country's economy, it needs to create a desire to spend more on basic needs in its huge consumer market. The government should take strategic steps to increase the purchasing power of the people to create new demand. Barriers to GST must be removed if industry is to be accelerated.

It is expected that all possible steps will be taken to maintain the historic growth rate seen in the first quarter of the current financial year 2021-22. The budget for the current financial year will be properly implemented. In addition to the budget for the current fiscal year, the financial aid packages announced by the government for the fight against the second wave of corona will also be effectively implemented. Certainly, due to such efforts, by the end of the current financial year 2021-22, the global growth rate will reach 9 to 10 per cent.

Vikas Parasram Meshram

vikasmeshram04@gmail.com