India economy: Data raises hopes of economic recovery in H2: Finance ministry


NEW DELHI: The sustained improvement in high frequency indicators ignites optimism of better performance in the second half of the year, a finance ministry report said on Tuesday. It reiterated India has been experiencing a V-shaped recovery since June when the gradual easing of lockdown restrictions was initiated.
The finance ministry’s monthly economic review for December said the impending vaccination is set to spur momentum in economic activity globally.
“The effective management of Covid-19 spread despite the festive season and onset of winter season, combined with sustained improvement in high frequency indicators and V-shaped recovery along with easing of lockdown restrictions distinguish Indian economy as one riding against the Covid-wave,” according to the report prepared by the department of economic affairs.
The report said that the agricultural sector remains the bright spot of the Indian economy, with healthy year-on-year growth of 2.9% in rabi sowing, accelerating tractor sales, and reservoirs’ live storage at 122% of decadal average. This, along with rise in minimum support prices accompanied by record procurement, and accelerated wage employment generation through MGNREGS, bodes well.



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