Looking at the numbers projected by the National Statistical Office (NSO) for the Indian economy in financial year 2022, a happy feeling surges in the country as the growth rate is pegged at 9.2 per cent, termed as fastest in the world. The first estimate before the annual Budget looks quite in the realistic zone as the NSO has gone ahead with a tempered projection as compared to the Reserve Bank of India’s forecast of the Gross Domestic Product (GDP) expanding at 9.5 per cent in the financial year. The difference in the numbers, though marginal, assumes a big significance as it would be the base parameter for the 2022-23 Union Budget to be tabled in the Parliament in a few weeks from now. It is quite obvious from the first estimates that the NSO has taken into account the likely dent on the economy by the current surge in corona virus positive cases in India. The situation may be at the initial level of raising safeguards against the infection spread but it is clear from the positivity rate in metros as well as tier-2 cities that economy is set to face a setback of some sorts in the coming months. That is why the first estimates hold big importance in assessing the future path of the country. The good thing amid the impending third wave of the pandemic is the exponential recovery Indian economy clocked in the last few quarters which has helped the country reach the pre-COVID levels. Of course, it is not a situation to paint the town red given the drag India has witnessed due to the pandemic, but there is a hope that India Inc. can manage to tide over the current crisis too with the help of generous Government stimulus. Another positive that the economy has seen is the mop-up in revenues through direct taxes. The collection reflects return to normalcy in all crucial sectors which drive the economy. It has helped in bridging the gap between nominal growth and real growth. However, the real challenge lies ahead with the emergence of the Omicron variant. It is set to affect private consumption and vulnerable sectors like hospitality and tourism. Restrictions are back in place in many regions which can further bring down public income as well as spending thus casting a direct effect on the recovery. This is the most tricky path that the markets will have to manage with the help of the administration. A delicate balance needs to be maintained while adapting to the emerging health situation to achieve the projected growth.