INDIAN ECONOMY ON THE PATH TO SWIFT RECOVERY: FINMIN REPORT

NEW DELHI: Strategic reforms and the rapid vaccination drive has placed the country on the path to swift recovery by enabling the economy to “navigate the ravaging waves” of the Covid-19 pandemic, according to the Finance Ministry’s Monthly Economic Review.

Sustained and robust growth in agriculture, sharp rebound in manufacturing and industry, resumption of services activity and buoyant revenues suggest that the economy is progressing well, the September review said.

“India is well-placed on the path to swift recovery with growth impulses visibly transmitted to all sectors of the economy... Strategic reforms undertaken so far along with new milestones in vaccination drive have enabled the economy to navigate the ravaging waves of the Covid-19-19 pandemic,” it said.

The external sector continues to offer bright prospects to India’s growth revival as the country’s merchandise exports crossed the $30-billion mark for the sixth consecutive month in fiscal year 2021-22, it said.

With merchandise trade deficit also rising in September, there is clear evidence of consumption and investment demand is also picking up in India, it said, adding, the external debt-to-GDP ratio continues to remain comfortable, declining to 20.2% at the end-June 2021, from 21.1% at the endMarch 2021.

In tandem with growth impulses witnessed across the economy, the report said, the rate of growth of bank credit stood at 6.7% YoY in the fortnight ending September 10, 2021 compared to 5.3% in the corresponding period of the previous year.

With restoration of supply chains, improved mobility, and softening food inflation, consumer price index (CPI) inflation retreated to a four monthlow of 5.3% in the last month, clearly demonstrating that inflationary tendencies are due to the pandemic and is transitory.