NEW DELHI: Armed with necessary macro and micro growth drivers, the stage is set for India’s investment cycle to kick-start and catalyse its recovery towards becoming the fastest-growing economy in the world, a finance ministry report said on Wednesday. “With India’s Covid vaccination campaign crossing new milestones in rapid succession and teeming festivities lending renewed optimism to India’s ongoing economic recovery, further demand stimulation, fuller restoration of supply chains, narrowing of demand-supply mismatches and greater employment generation are in the offing,” said the monthly economic report for October. It said major structural reforms unveiled as part of the Atmanirbhar mission continue to play a critical role in shaping India’s economic recovery, both through the signalling of business opportunities and expansion of spending channels. The report said that the recovery gathered steam in the festive season due to the decade-high Diwali sales and the improving Covid situation. It said the World Trade Organization’s October forecast also confirms favourable trade prospects underpinned by resurgence in global economic activity and vaccine dissemination. “This augurs well for India’s export performance in the near future, lending credence to IMF projecting India to become the fastest-growing economy, among major countries, in the current and the following year,” according to the report. It said the recent cut in central excise duty on petrol and diesel prices is expected to soften inflationary pressures exerted by rising crude oil prices. However, it said core inflation (which is minus food and fuel), which reflects hardening of input costs and ripple effects of escalating global crude oil prices, poses concerns. The report said that the agricultural sector continues its strong presence in economic recovery. Rural demand remains upbeat with monthon-month (m-o-m) improvement in tractor and two-and three-wheeler sales.