Tribune News Service
New Delhi, November 4
India stands poised to recover at a fast pace and reach pre-Covid levels by the end of the year, barring a second wave that may be triggered by the fatigue with social distancing, says the Finance Ministry’s report for October.
It said the steady contraction of active Covid cases and a low case fatality rate has instilled measured optimism that the worst is behind us. At the same time, a second wave of the pandemic in advanced nations is a grim reminder of how reality hits back when caution is compromised.
Economy back on track: Javadekar
New Delhi: Citing several macroeconomic indicators such as increased demand of power and higher GST collections, Union Minister Prakash Javadekar said on Wednesday that economy was getting back on track “quicker than expected”, despite the Covid pandemic. He was briefing mediapersons. TNS
The sustained surge of activity levels in India is a reflection of a relatively more manageable pandemic situation in the country as compared to advanced nations.
The movement of high frequency indicators in October point towards broad-based resurgence of economic activity, notably in healthy kharif output, power consumption, rail freight, auto sales, vehicle registrations, highway toll collections, e-way bills, rebound in GST collections and record digital transactions.
Rural consumption has stayed strong, in part helped by sustained MSP procurement of foodgrain, while the manufacturing purchasing managers’ index rose from 56.8 in September to 58.9 in October, pointing to the strongest improvement in the health of the sector in over a decade.
Prospects of economic normalisation are evident in the external sector indicators with consumption of petroleum products increasing in September and exports rebounding with a year-on-year positive growth for the first time in the past seven months.
October witnessed some moderation in exports growth, primarily driven by weak oil exports. The expected current account surplus during the year is likely to provide a cushion to increased spending in the economy, it said.