What has happened?
- Indian economy has gained momentum during the July-September period, inching gradually back to normalcy as coronavirus related disruptions eased significantly in the aftermath of a devastating second wave.
- Gross domestic product (GDP) for the second quarter of the financial year grew by 8.4% from a year ago, one of the fastest rates among major economies, data released by the government showed on Tuesday.
- A pickup in demand, improved vaccination rate for Covid-19 and a low base effect are likely to have aided an uptick in the growth rate for the second quarter this year.
- However, the latest threat from the Omicron variant looms large, which has already triggered the return of travel restrictions.
- While the Indian economy is yet to see any impact, the news is weighing on the sentiments in the currency and stock markets.
- The supply chain bottlenecks that have pushed up inflation globally are likely to ease with time.
- Policymakers are likely to be tolerant of slightly higher than target inflation in the interim, and not view it a big threat, but slightly faster normalization cannot be ruled out.
Q) Transfer payments refer to payments that are made?
- As compensation to employees
- Without any exchange of goods and services
- To workers on transfer from one job to another
- None of the above