Sunday, July 05 2020

June 23, 2020

Improvement in Indian Economic Indicators, Atmanirbhar Bharat

New Delhi – The strict lockdown and social distancing measures enforced to address the challenge of Corona pandemic in India. However, they adversely affected the economy. India has entered the Unlock India phase from June 1 with phased resumption of services and businesses. The Government and the RBI have taken prompt policy measures – both short term and long term – in a calibrated manner to reinvigorate the economy at the earliest with minimal damage.

Agricultural sector remains the foundation of the Indian economy and with a forecast of a normal monsoon, should support the rebooting of the Indian Economy. Though the GDP contribution of the sector may not be very large (in relation to Industry and Services), its growth has a very positive impact on the large population dependent on agriculture. For example Procurement of wheat from farmers by Government agencies has touched an all-time record figure of 382 Lakh Metric Tonnes. Fertilizer sales have surged by almost 98 per cent year-on-year in May 2020(40.02 lakh tonnes), reflecting a robust agricultural sector.

The resilience of the Indian manufacturing is evident from the fact that within a period of 2 months, India has become the worlds second largest manufacturer of Personal Protective Equipment (PPE) starting from scratch. Early green shoots of economic revival have also emerged in May and June with real activity indicators like electricity and fuel consumption, inter and intra-state movement of goods, retail financial transactions witnessing pick up.