Strategic reforms and the rapid vaccination campaign put the country on the path to rapid recovery by allowing the economy to “navigate the devastating waves” of the COVID-19 pandemic, according to the ministry’s Monthly Economic Review finances.
Sustained and robust growth in agriculture, a sharp rebound in the manufacturing and industrial sector, the recovery in service activity and dynamic incomes suggest that the economy is progressing well, according to the September review.
“India is well placed on the path to a rapid recovery with growth impulses visibly transmitted to all sectors of the economy … The policy reforms undertaken so far as well as further steps in the campaign vaccinations have allowed the economy to navigate the devastating waves of the -19 COVID pandemic, “he said.
The external sector continues to offer bright prospects for India’s resumption of growth as the country’s merchandise exports surpass the $ 30 billion mark for the sixth consecutive month in fiscal 2021- 2022, he said.
With the merchandise trade deficit also increasing in September, there is clear evidence that consumption and investment demand are also picking up in India, he said, adding that the external debt-to-GDP ratio remains comfortable, falling to 20.2 percent at the end of June 2021, from 21.1% at the end of March 2021.
Along with the growth impulses seen across the economy, the report said, the growth rate of bank credit stood at 6.7% year-on-year in the fortnight ending September 10, 2021, against 5.3% in the corresponding period of the previous year.
With the restoration of supply chains, improved mobility and slowing food inflation, consumer price index (CPI) inflation fell to a four-month low of 5 , 3% in August 2021, clearly demonstrating that inflationary trends are pandemic-induced and transient.
However, he added, volatile prices in international crude oil markets and rising prices for edible oils and metal products could continue to be a problem.
Comfortable levels of systemic liquidity and easing inflationary pressures also provided stability to G-Sec yields in September 2021. The 10-year yield was unchanged at 6.2% from August.
The latest trends in high-frequency economic indicators in August and September further indicate a widespread recovery, evidenced by sustained improvement in energy consumption, rail freight activity, electronic invoices, robust GST collections. , road toll collections registering a 21-month high, sequential rise in air freight and passenger traffic, and a leap forward in digital transactions.
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