With 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.

On exports, 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.

It is 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.

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