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India is on its way to becoming the fastest growing major economy in the world, aided by rapid vaccination and improving coronavirus situation in the country, the finance ministry's monthly economic review report noted.

This comes despite sluggish global economic recovery, impacted by prolonged supply constraints and input cost inflation. Rapid vaccination and teeming festivities will push India's ongoing recovery resulting in narrowing of demand-supply mismatches and greater employment opportunities. Armed with necessary macro and micro growth drivers, the stage is set for India's investment cycle to kickstart and catalyse its recovery towards becoming the fastest growing economy in the world, the report said.

Other highlights from the monthly economic review report

- The Survey had said growth will be supported by supply-side push from reforms and easing of regulations, push for infrastructural investments, boost to manufacturing sector through Production-Linked Incentive (PLI) schemes, recovery of pent-up demand, rise in discretionary consumption subsequent to rollout of vaccines and pick-up in credit given adequate liquidity and low interest rates.

- Agricultural sector continues its strong presence in economic recovery with higher acreage of Rabi sowing, improved reservoir levels, and adequate availability of fertilisers and seeds ensured by the union government.

- Aatmanirbhar Bharat Mission encapsulating major structural reforms continues to play a critical role in shaping India's economic recovery, both through the signalling of business opportunities and expansion of spending channels.

- The Economic Survey 2020-21, released in January this year, had projected GDP growth of 11% during the current financial year ending March 2022.

- India's economic recovery gathered steam in the festive season, recording a decade high Diwali sales of 1.3 lakh crore, as per Confederation of All India Traders.

- Improving Covid-19 situation amid high business and consumer spirits delivered sustained economic recovery in October 2021 as well. The global economic recovery however continues to be impacted by prolonged supply constraints and input cost inflation.

- Sustained rise in agri-exports, growing year-on-year by 22% in April-August 2021, bespeaks government's commitment to increasing farmers' income

- Rural demand remains upbeat with month-on-month improvement in tractor and two and three-wheeler sales in September 2021.

- Softening retail inflation and adequate liquidity in the market are also reflected in largely stable G-Sec and corporate bond yields since July 2021.

- A more deliberate effort to reduce cost of borrowing is seen in complete pass-through of policy repo cuts as weighted average lending rate (WALR) on fresh rupee loans decline by 130 basis points between February 2020 and September 2021.

- Industrial production expanded in August to reach 103% of its pre-pandemic August 2019 level with manufacturing witnessing full recovery in most of the use-based categories

- Declining borrowing costs have resulted in buoyant growth of bank credit in September. Healthy credit penetration in labor- intensive sectors bodes well for employment generation in the economy.

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