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New Delhi: India may have crossed the peak of the Covid-19 pandemic, setting the stage for economic recovery, the Finance Ministry said in its September monthly economic outlook report.
The report, citing different parameters, further said that the economic recovery may have gained momentum in recent months due to the government’s economic package, as well as the unlocking of the economy.
“Data for the 14-day period 17-30 September suggests that India may have crossed the peak of Covid-19 case burden. During this period, the seven-day moving average of daily positive cases has steadily decreased from approximately 93,000 to 83,000, while the seven-day moving average of daily tests has increased from approximately 1.15,000 to 1.24,000. The report. Sunday, he said.
The report warned that the pandemic is far from over, but added that “the declining rate of positivity across India sets the stage for further pushing the frontiers of economic recovery.”
He also emphasized the need for self-protection with proper precautions as access and mobility restrictions are further eased.
According to data from the Ministry of Health and Family Welfare, the total number of Covid-19 cases in India surpassed 65 lakh on Sunday, with more than 55 lakh of recoveries.
Read also: Modi government removes defense spending cap for third quarter amid tensions with China
The report aims to record agricultural production
The Ministry of Finance cited a record production of kharif food grains to support your case for an ongoing economic recovery.
He also referred to an increase in demand in the rural sector, reflected by an increase in the registration of two- and three-wheel vehicles and passenger vehicles and tractor sales in August, compared to the same period of the previous year.
The report also noted how high-frequency indicators have improved in sync with global activity. For example, India’s exports increased more than 5 percent in September.
Many mobility and logistics indicators have also increased. Rail freight, rail passenger earnings, freight traffic volumes and domestic aviation traffic have all improved, he said.
The report concluded by warning that a sustained spread of the virus represents a downside risk to the growth rate in the short and medium term. However, he noted that structural reforms in various sectors “will strengthen the fundamentals of the economy towards strong and sustainable long-term growth.”
The Indian economy contracted by 23.9 percent in the first quarter of 2020-21 when the full two-month national shutdown that began on March 25 halted all economic activity.
The economy is expected to contract also in the second quarter and the pandemic shows no signs of abating. For the full fiscal year, the economy anticipation of contracting by more than 10 percent according to most economists.
Read also: The government will borrow Rs 4.34 lakh cr in the second half of 2020-21 to cover expenses amid the Covid crisis
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