We’re largely back to pre-Covid growth: FM
NEW DELHI: Finance minister Nirmala Sitharaman on Saturday expressed confidence in the robustness of the Indian economy, pointing out that 19 out of 22 high-frequency indicators have returned to or surpassed pre-pandemic levels .
Speaking at the Hindustan Times Leadership Summit, she said the government is cautious about the Omicron variant, but with rapid vaccination and strong Covid-19 protocols, it is confident about sustained growth momentum. “I’m still very hopeful that this year’s GDP (gross domestic product) numbers would be very encouraging, and we’d still be the fastest growing economy in the world,” the finance minister said.
The Indian economy grew 8.4% in the September quarter, comfortably exceeding estimates.
“At the macro level, we have managed to put the effects of the pandemic behind us and are now on a steadier path of growth,” Sitharaman said, citing the 22 high-frequency indicators.
“In 19 of them we’ve achieved pre-pandemic or even crossed pre-pandemic levels, meaning we have performed better than pre-pandemic levels. About three of them have problems because of the nature of that particular sector,” she said, referring to sectors such as tourism that was hit hard due to travel restrictions to check the spread of Covid-19.
Her reference is to indicators that come with a higher fre
At the macro level, we have managed to put the effects of the pandemic behind us and are now on a steadier path of growth. NIRMALA SITHARAMAN, Finance Minister
quency than a quarter, such as monthly purchasing managers indices (PMI), car sales and factory output.
The finance minister said data is consistently showing Indian economy is growing. “PMI index is the highest in the last 10 months... There is a consistency to this performance and, therefore, I would think ... having reached the pre-pandemic level is one thing. Having crossed the pre-pandemic levels is the next.”
The recent IHS Markit India
Purchasing Managers’ Index for manufacturing was 57.6 in November, the strongest expansion for the sector in 10 months.
PMI for services has been also robust even as it is eased marginally to 58.1 in November compared to 58.4 in October. A PMI value above 50 signifies economic expansion.
“Tenacity and perseverance shown by the Indian people are actually resulting in this growth,” Sitharaman said.