Sitharaman says Indian economy seeing strong recovery after strict lockdown

The Centre has announced another stimulus package to boost the Indian economy and while addressing the media on Thursday, Finance Minister Nirmala Sitharaman said the economy is witnessing a strong recovery after the prolonged and strict lockdown.

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Nirmala Sitharaman said the economy is witnessing a strong recovery after the prolonged and strict lockdown. (PTI)

The Centre has announced another stimulus package to boost the Indian economy and while addressing the media on Thursday, Finance Minister Nirmala Sitharaman said the economy is witnessing a strong recovery after the prolonged and strict lockdown.

Addressing a press conference to announce the stimulus measures to boost growth, Sitharaman said macro-economic indicators are pointing towards recovery of the Indian economy.

Sitharaman also pointed at the decline in active Covid-19 cases in India and said the active case numbers have declined from over 10 lakh to 4.89 lakh with case fatality rate (CFR) at 1.47%.

Giving out details of recovery of the Indian economy, Sitharaman said composite purchasing managers index (PMI) rose to 58.9% in October versus 54.6% in the previous month, registering strongest increase in output in close to nine years.

Energy consumption growth trended higher in October at 12% year-on-year, while Goods and Services Tax (GST) collections have grown 10 per cent to over Rs 1.05 lakh crore.

Daily railway freight tonnage grew by an average 20% year-on-year versus 12%, she said adding bank credit has improved 5.1%.

Also, foreign direct investment (FDI) inflows in April-August at $35.37 billion has seen a 13% rise on a year-on-year basis.

RBI has predicted a strong likelihood of Indian economy returning to positive growth in Q3 2020-21, ahead by a quarter from the earlier forecast, Sitharaman said, adding prominent economists have suggested that the rebound is not only due to pent up demand but also due to strong economic growth.

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