Painting a rosy picture of the economy, the finance ministry's monthly report on Tuesday said growth and inflation outlook for 2021-22 portends more than full recovery, and that the country has become the COVID-19 vaccine hub of the world.

 "The structural reforms and the policy push under the Aatmanirbhar Bharat Mission along with the slew of measures announced in the Union Budget 2021-22 towards achieving broad-based inclusive growth will strengthen the fundamentals of the economy and bring it back on to a strong and sustainable growth path in the year ahead," the ministry's Monthly Economic Report said.

Growth and inflation outlook in 2021-22, "portends more than full recovery", it added. Indian economy is estimated to contract 7.7 percent in the current financial year, mainly due to the coronavirus pandemic. The latest Economic Survey projected growth rate to rebound to 11 percent during 2012-22 while the Budget estimated real GDP to be between 10-10.5 percent.

"FY 2021-22 will be the year to rebuild with the IMF projecting growth of output at 11.5 percent, Economic Survey at 11 percent and the RBI's Monetary Policy Committee at 10.5 percent. The Survey pitched for growth through countercyclical fiscal policy emphasizing that growth alone is the answer to sustaining the public debt burden of the country, the report said.

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