The economy has slowly been recovering and even the number of COVID-19 cases seem to have crossed their peak. Even though the pandemic is far from being over, the number of cases in mid-September, fell from an average of 93,000 to 83,000 while the number of tests increased from 1,15,000 to 1,24,000. With this silver lining in the cloud, India sets the stage to bolster yet again the frontiers of economic recovery. As our Hon’ble PM quoted “jaan bhi aur jahan bhi”, the industry and nation alike are making concentrated efforts to revive the Indian economy, focusing on MSMEs, as they employ more than 11 crore people.
The second quarter of the FY 21 in India, witnessed the gradual unlocking of the economy, acting as a catalyst to its recovery and rehabilitation. Micro indicators like auto sales tractor sale, steel consumption, GST collection, PMI, performance of core industries, amongst others, are enough proof of a V-shaped recovery in India.
With the gradual unlocking of the economy, we are well on the path to recovery and rehabilitation, ably supported by a plethora of Government policies. The Monthly Economic Report, July 2020 gives us insight to India’s economic revival.
The Government of India on July 29, introduced the National Education Policy 2020, a major feat that aims to drive large scale, transformational reforms in school and higher education. The policy has been designed to help India empower its rich human resource on the way to developing an inclusive and sustainable society and economy.
India is now gradually moving towards an economic revival led by a Rs.21 trillion (+US$280.4 billion) stimulus package aimed at delivering socioeconomic security amid the uncertainties of the global pandemic.
Global growth has hit unprecedented depths of despair amidst COVID-19 with substantial risks of even more severe outcomes remaining. The IMF’s World Economic Outlook of April 2020 projected global output in 2020 to contract by 3% with the output of advanced countries contracting more than emerging markets and developing economies.
Following a cyclical downturn, the Indian economy had begun to regain momentum with clear signs of an uptick in consumption and investment towards the end of Q3 2019-20, only to be halted by the pandemic that made the Government enforce country-wide lockdown in late March 2020.
The Government of India is working on the next phase of Ease of Doing Business Reforms related to easy registration of property, fast disposal of commercial disputes, a simpler tax regime, among others, to make India one of the easiest places to do business in.
As part of the COVID-19 stimulus plan, The Government of India announced structural reforms in eight sectors – Coal, Minerals, Defence Manufacturing, Civil Aviation, Power Sector, Social Infrastructure, Space and Atomic energy – that will open up avenues for enhanced trade and investment activities
The Ministry of Statistics and Programme Implementation (MoSPI) attaches considerable importance to coverage and quality aspects of statistics released in the country. The statistics released are based on administrative sources, surveys, and censuses conducted by the Central and State Governments and non-official sources and studies.
India is one of the largest producers of food products in the world, spanning grains and vegetables to milk and meat. To protect the sector from the impact of Coronavirus, the Government of India has brought out a range of initiatives.
The Government of India has provided a wide range of support, from special EPF withdrawal to food ration, to support the wort affected in the pandemic.
The Government of India’s special economic package for COVID-19 worth nearly Rs.21 trillion – equivalent to 10% of India’s GDP – involves support to businesses, including MSMEs.
The COVID-19 pandemic has emerged as a key risk to human health and the economy the world over. As per the International Monetary Fund’s (IMF) World Economic Outlook (April 2020), global growth is expected to contract sharply by 3 per cent in 2020-21, much worse than during the global financial crisis of 2008-09. Economic Report (March 2020)
India’s real GDP growth has been estimated at 5.1 per cent for 2021 by the United Nations Economic and Social Commission for Asia and the Pacific.