India’s recovery gains momentum on economic package: DEA

The economic recovery of India has gained momentum due to the “Aatmanirbhar Bharat” economic package announced in May, said a report by the Department of Economic Affairs (DEA). The ‘Monthly Economic Review’ for September 2020 cited the estimated growth in the Kharif foodgrain output for 2020-21 to show a recovering economy.

“The implementation of Aatmanirbhar Bharat (AB) package and unlocking of the economy have ensured that economic recovery in India has gained momentum. This is seen in agriculture with the production of Kharif foodgrains in 2020-21 estimated to go past the previous year’s level,” it said.

It noted that the growth of demand in the rural sector is reflected in the registration of two-wheelers, three-wheelers and passenger vehicles along with tractor sales reaching or surpassing previous year levels in August.

Automobile sales largely recorded improvement last month compared to September 2019, a major reason being the low base — low sales during the year-ago.

The report also said that other high-frequency indicators have also improved in sync with global activity. Increase in global demand has led to the expansion of India’s export at 5.3 per cent in September on a YoY basis, it added.

The recovery in rail freight enabled revenue earnings clocking positive year-on-year growth for the first time since March in the months of August and early September.

The DEA report said that easing of inter-state movement restrictions, quarantine policy and unlocking were accompanied with recovery in rail passenger earnings as well.