Business Economy

Indian economy witnessing strong recovery: Sitharaman

Addressing a press conference to announce more stimulus measures to boost growth, she said macro-economic indicators are pointing towards recovery.

Finance Minister Nirmala Sitharaman on Thursday said the Indian economy is witnessing a strong recovery after a long and strict lockdown.

Addressing a press conference to announce more stimulus measures to boost growth, she said macro-economic indicators are pointing towards recovery.

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COVID-19 active cases have declined from over 10 lakh to 4.89 lakh with case fatality rate (CFR) at 1.47%, she said.

Giving out details of recovery, she said composite purchasing managers index (PMI) rose to 58.9% in October versus 54.6% in the previous month, registering strongest increase in output in close to nine years.

Energy consumption growth trended higher in October at 12% year-on-year, while Goods and Services Tax (GST) collections have grown 10% to over ₹1.05 lakh crore.

Daily railway freight tonnage grew by an average 20% year-on-year versus 12%, she said adding bank credit has improved 5.1%.

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Also, foreign direct investment (FDI) inflows in April-August at $35.37 billion has seen a 13 % rise on a year-on-year basis.

RBI has predicted a strong likelihood of Indian economy returning to positive growth in Q3 2020-21, ahead by a quarter from the earlier forecast, she said adding prominent economists have suggested that the rebound is not only due to pent up demand but also due to strong economic growth.

Source: thehindu.com

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