GDP will be positive next quarter, hopes Amit Shah

AHMEDABAD: Union Home Minister Amit Shah on Monday said he hopes the GDP will be back to positive territory in the next quarter, after two consecutive quarters of contraction.

Prime Minister Narendra Modi worked hard for the economic recovery and had also announced a package after the crisis due to coronavirus, Shah said after inaugurating two road over-bridges in Ahmedabad through virtual mode. He also praised Modi for a record

FII (foreign institutional investors) inflow to India during the COVID-19 pandemic period.

“As prime minister, Narendrabhai used the time of COVID-19 pandemic to visualise policy-making, keeping in mind its long-term impact on the economy,” Shah said. Without wasting a second, he worked on reforms in many areas like farm sector, electricity, industrial policy, to create a system to maintain the pace of development, he said. Towards this end, he offered a package of Rs 20 lakh crore for welfare of poor people and to give pace to the economy, Shah said in his address via video-conferencing.

“As a result, in terms of the recent GDP figure, we are only six per cent behind...and I hope that in the next quarter, the GDP will be in plus (positive),” Shah said. The gross domestic product (GDP) had contracted by a record 23.9 per cent in the first quarter (AprilJune) of 2020-21 fiscal as lockdown pummelled economic activity.

The country’s economy recovered faster than expected in the July-September quarter as a pick-up in manufacturing helped GDP clock a lower contraction of 7.5 per cent, according to official data released recently. Shah also praised Modi for a record FII (foreign institutional investors) inflow to India during the pandemic period, and said it was a result of far-sightedness of the Prime Minister who “utilised the COVID-19 period to bring about reforms in the economic and industrial policy”.

GDP contracted by record 23.9 per cent in first quarter of 2020-21 fiscal as lockdown pummelled economic activity