Bikky Khosla | 11 Oct, 2021
post-pandemic economic activity in the country picking up pace, India is
well-placed on the path to swift recovery with growth impulses visibly
transmitted to all sectors, according to the latest Monthly Economic Review
released by the Department of Economic Affairs. The report points out to
improvement in agriculture, industry, manufacturing, exports and credit offtake
by MSMEs, among others.
As far as
the Indian industry is concerned, it is gaining lost ground, with IIP
witnessing a broad-based YoY growth of 11.5 percent in July 2021. Similarly, rise
in PMI Manufacturing to 53.7, coupled with PMI Services clocking a 55.2,
establish a robust recovery. The report also points out that some high
frequency indicators including power consumption, rail freight activity, e-way
bills, and GST collections are encouraging.
the report mentions that the external sector continues to offer bright
prospects to growth revival as merchandise exports crossed US$ 30 billion mark
for the sixth consecutive month in FY 2021-22. It adds that with merchandise
trade deficit also rising in September, there is clear evidence of increasing
consumption and investment demand in the country. External debt to GDP ratio
also continues to remain comfortable.
also encouraging that the report points to growth in bank credit, with the rate
of growth standing at 6.7 percent YoY in the fortnight ending September 10,
2021 compared to 5.3 percent in the corresponding period of the previous year.
More importantly, credit offtake by MSMEs continued to perform well in August.
This is good sign for our small businesses which has being going through a
tough phase for quite some time now.