Second Best in Vaccination Coverage
India's vaccination campaign has received a major boost as per data released by the health ministry. It suggests that India has become the second country after the US to have administered 20 crore doses of vaccine.
India has managed to do so in 130 days as against the USA's 124 days. Among the other leading countries, the UK has administered a 5.1 crore mark in 168 days, Brazil reached the 5.9 crore mark in 128 days, and Germany has given 4.5 crore doses in 149 days.
There has been a constant negative campaign surrounding India's vaccination drive, especially on social media. In that context, this data is surely heartwarming. The ministry further revealed that over 34% of the 45+ population has received at least the first dose of vaccine.
Growth Returns in Developed Economies
The developed economies across the globe are witnessing a sharp surge in activity levels, following the ease in restrictions and swift vaccination programs.
This is duly reflected in the monthly PMI data streaming in from these countries. The US PMI for May is recorded at 68.1. The UK PMI at 62, is at a record high since January 1998. The demand in the Eurozone is also rising at the fastest pace in fifteen years. Japan is the only developed economy that continues to remain a laggard where output is contracting due to a rise in new infections.
While growth is returning at a fast pace, rising inflation is the major concern emerging for these economies. Inflation is soaring in these countries as rising input costs have taken output prices to new peaks.
Uday Kotak’s Advice
India's top banker Uday Kotak has vouched for the need of expanding the balance sheet of the government, duly supported by the RBI in order to tackle the liquidity-related constraints and support growth.
The current situation is the most appropriate to print money to invest in job-creating sectors. It will support those who are at the bottom of the pyramid, Uday Kotak said in an interview with NDTV.
By printing money, RBI will put money into the financial system. It could help the government to finance its fiscal spending. However, it could spike up inflation while lowering the return on government securities and other fixed-income instruments like bank FDs.