MoF : Economy on the path to
swift recovery, says finance ministry report
fast-paced vaccination roll-out and enhanced mobility, currently around 90 per
cent of pre-pandemic level, have placed the economy on the path to swift
recovery, which gained further momentum in September, the finance ministry said
ministry said the government was able to beat its own ambitious target of 670
million vaccine doses set in June well before the onset of the festive season.
So far, 930 million cumulative doses have been administered, the second highest
among all countries. It added that the country will be able to vaccinate the
entire adult population by the end of the current year.
current rate of inoculation shows that the country is not only regaining
recovery momentum but has also progressed towards attaining herd immunity.
and robust growth in agriculture, sharp rebound in manufacturing and industry,
resumption of services activity and buoyant revenues suggest that the economy
is progressing well, according to the Department of Economic Affairs Monthly
added that strategic reforms undertaken along with new milestones in
vaccination have enabled the economy to navigate the ravaging waves of the
Covid- 19 pandemic. High-frequency indicators for August and September indicate
broad-based recovery, as evidenced in sustained improvement in power
consumption, rail freight activity, e-way bill generation, robust GST
collections, and highway toll collections touching a 21-month high, sequential
uptick in air freight and passenger traffic, and quantum leap in digital
transactions, the report noted.
the vaccine math, the report said more than three-fourths of India s adult
population has received at least one dose while more than a fourth has been
administered both doses.
average daily inoculation rate witnessed 91 per cent increase from 4.1 million
in June to 7.9 million in September, the highest after China. Citing state-wise
data, the ministry said 10 states and union territories have achieved 100 per
cent coverage of their respective adult populations with the first dose.
However, second dose coverage remains less than 40 per cent in most states, but
is expected to pickup significantly in the coming months.
about the external sectors, it said they continue to offer bright prospects to
India s growth revival as the country s merchandise exports crossed the $30
billion mark for the sixth consecutive month in FY22.
merchandise trade deficit also rising in September, there is clear evidence
that consumption and investment demand is picking up in India, the ministry
said, adding that the external debt-to-GDP ratio remains comfortable, declining
to 20.2 per cent at the end of June.
the restoration of supply chains, improved mobility, and softening food
inflation, consumer price index (CPI) based inflation retreated to a four-month
low of 5.3 per cent in August, demonstrating that inflationary tendencies are
pandemic-induced and transitory, the ministry said.
it said, volatile prices in the international crude oil markets and
upward-bound prices of edible oils and metals are concerns. Comfortable levels
of systemic liquidity and softening of inflationary pressure have also lent
stability to G-Sec yields in September. The benchmark 10-year yield remained
unchanged at 6.2 per cent. Trends in foreign direct investment indicate that
the country remains a preferred investment destination for global investors.
India attracted FDI inflows of $27.37 billion in the first four months of FY22,
a 62 per cent rise over the corresponding period of FY21 ($16.92 billion).