NEW DELHI :
AS THE post-pandemic economic activity in the country picks up pace, the Finance Ministry has said that India is well-placed on the path to swift recovery with growth impulses visibly transmitted to all sectors of the economy. The Monthly Economic Review for September 2021 released by the Department of Economic Affairs (DEA) on Monday said that sustained and robust growth in agriculture, sharp rebound in manufacturing and industry, resumption of services activity and buoyant revenues are suggesting that economy is progressing well. “Strategic reforms undertaken so far along with new milestones in vaccination drive have enabled the economy to navigate the ravaging waves of the pandemic,” it said.
The Ministry noted that ebbing of the second wave coupled with rapid progress in vaccination bode well for revival of consumer sentiment, the upcoming festive season, but it warrants caution and continued adoption of COVID-19 appropriate behaviour. It said that the latest trends in high frequency economic indicators in August and September further indicate a broad-based recovery evidenced in sustained improvement in power consumption, rail freight activity, e-way bills, robust GST collections, highway toll collections posting a 21-month high, sequential uptick in air freight and passenger traffic, and quantum leap in digital transactions. While automobile registrations and sales remain affected by global shortage of semiconductor chips, the post-monsoon festive season is expected to boost demand, the report said. It added that continued decline in growth of currency in circulation since August is indicative of decreasing demand for precautionary savings with progressive reopening of the economy.
On the equity market, the report has said that it remains buoyant on reassuring indications of both global and domestic economic recovery. FPI flows into the country remain robust with India reporting highest inflow of $3 billion in September among emerging market economies. Thus far in this fiscal, India is reported to have received FPI worth $7.2 billion, the second highest after Brazil’s $9 billion. These historic highs have engendered a bullish run in domestic equity markets as record additions of new Demat accounts broaden the base of equity investment in the country, the report said.