India’s resilient V-shaped recovery still intact, says Finance Ministry
- ByStartupStory | September 9, 2021
Despite a more brutal second wave in India, a resilient V-shaped recovery is still intact, said the Finance Ministry in its Monthly Economic report for August. This fast-paced recovery is evident, FinMin believes, due to the growth in power consumption, rail freight, highway toll collections, e-way bills, digital transactions, and also robust GST collections. The momentum of revival is marked by the PMI hitting an 18-month high of 56.7, comfortable agricultural prospects with Kharif sowing, and markets reflecting India’s fundamentals, the report states. CPI inflation in August eased to a three-month low showing a restoration in supply chains and falling well within the monetary policy goal. Vaccinations in India have kept strength with average 56.6 lakh daily doses in August due acceleration in rural areas.
The industrial sector’s all-round recovery too shows bright prospects with July core industry index 1.1% higher than pre-Covid July 2019 numbers, while merchandise exports have crossed the $30-billion mark for the fifth consecutive month in FY22. The recovery in tax collections bolsters the government’s options to support the economic recovery and its aims of a V-shaped recovery.
India’s economy expanded at its fastest ever in the June quarter, helped by the low base of the year-earlier record contraction and a strong rebound in manufacturing and construction.
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