Indian economy recovering fast, all parameters show improvement: DEA Secretary

The Indian financial system is recovering quick and can quickly be again on rails as all of the parameters have began exhibiting enchancment, Finance Secretary Tarun Bajaj stated on Tuesday.

“We are actually seeing an improvement in all parameters generally and we are expecting further improvement in the month of November and this should continue. Hopefully the economy should be back on rails and it is moving much faster than what had been anticipated by a lot of experts and economists,” he stated.

Last month, the International Monetary Fund stated the Indian financial system, severely hit by the coronavirus pandemic, is projected to contract by a large 10.3% this 12 months.

However, it projected a rebound to eight.8% in 2021. Last monetary 12 months, India witnessed a progress charge of 4.2%.

The RBI has projected a contraction of 9.5% within the present fiscal.

Last week, Finance Minister Nirmala Sitharaman stated there have been seen indicators of revival within the financial system and the GDP progress could also be in unfavorable zone or close to zero within the present fiscal.

Echoing related sentiments, Bajaj stated, “We continue to see an uptick in the economy since the past few months since the opening up of the economy and the manufacturing PMI has touched 58.9, which is the highest in the last decade. The power consumption in the month of October is 12.10% more than October 2019, which is a signal of economic activity.”

Similarly the worth of E-way payments has gone up virtually 19% within the month of October, it’s valued at 16.82 lakh crore and the railway freight is up by 15.5% in September and virtually 14% in October, he stated.

“Average daily toll collection is up by almost 120%. So basically these are signals of economic activity going up. The GST collection has touched Rs 1.05 lakh crore, almost 10% higher year-on-year. The FPI inflow is about $3.2 billion in October as compared to some negative figure for September. The number of issues in the capital market have gone up,” he stated.

Credit progress, he stated, has seen some enchancment by registering a progress of 5.8% in October as in comparison with 5.3% in September.

“The FDI during April-August is $35.73 billion, external sector remains robust, our foreign reserves have touched almost $560 billion. We had a very good Kharif crop, Rabi is also good and we are hoping for a bumper Rabi crop. I should also mention the number of Covid cases are seeing a downtrend, the fatality rate is down, and now they are close to about 5 lakh cases. In case we keep taking precautions during coming winter months and especially during festival season, I think we should be in better times,” he stated.

He additionally stated India progress story is unbroken regardless of the Covid disaster and there are lot of curiosity from buyers from the world over.

“So, in spite of the Covid situation that we are facing, we find that there is a lot of interest, a lot of traction, there are lot of enquiries from investors…lot of deals are being talked about, which shows that in spite of the Covid situation, our growth story which we feel is intact is also accepted by others who are ready to invest into India during these times,” he stated.