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'More than full' economic recovery likely in FY22: FinMin report
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SME Times News Bureau | 10 Feb, 2021
As the economy emerges out of the pandemic-induced slowdown, a report by
the Department of Economic Affairs (DEA) has said that the outlook for
growth and inflation of the country in the upcoming financial year
(2021-22) indicates a "more than full recovery" of the economy.
The
'Monthly Economic Review' for January 2021 said the structural reforms
and the policy push under the Atmanirbhar Bharat Mission along with the
slew of measures announced in the Union Budget 2021-22 towards achieving
broad-based inclusive growth will strengthen the fundamentals of the
economy and bring it back on to a strong and sustainable growth path in
the year ahead.
"Growth and inflation outlook in 2021-22 portends more than full recovery," it said.
The
report added that a sustained and strengthening economic recovery
continues to be witnessed in January, 2021 across key high frequency
indicators such as power consumption, inter and intra state mobility,
manufacturing capacity utilisation, business expectations and consumer
confidence.
GST collections in January, 2021 have been the
highest monthly collections so far in the history of this tax regime, it
said, adding that manufacturing and services PMI remain in expansionary
zone while augmented credit growth, surging FDI and FPI flows and
private placement of corporate bonds are providing critical financial
cushion to the real recovery.
The DEA report highlighted that the
Economic Survey, 2020-21 has drawn attention to the V-shaped economic
recovery as a testimony to the resilience and intrinsic strength of the
Indian economy. It noted that the survey roots for growth through
counter cyclical fiscal policy emphasizing that growth alone is the
answer to sustaining the public debt burden of the country.
The
Budget, 2021-22 presented two days later implemented the counter
cyclical fiscal policy by raising the target of fiscal deficit to 6.8
per cent of GDP, more than double the Fiscal Responsibility and Budget
Management Act (FRBM) target.
"With the expanded borrowing
programme mostly meant for funding the enhanced capital outlay, the
Budget has set in place the multiplier impact on growth to support the
prescribed fiscal glide path tapering to 4.5 per cent of GDP in 2026,"
it said.
It said that with the International Monetary Fund (IMF)
keeping India's growth projections elevated at 6.8 per cent in FY
2022-23, India is back as the fastest growing major economy in the
world.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
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75.65 |
Japanese
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56.85 |
As on 13 Aug, 2022 |
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