NEW DELHI: Finance Minister Nirmala Sitharaman on Tuesday it said there were visible signs of recovery, but India gross domestic product (GDP) could be in negative zone or close to zero in the current fiscal year in the wake of the ongoing coronavirus pandemic.
Speaking at CERAWeek’s India Energy Forum, the finance minister said that with the unlocking, the Indian economy it has started to show signs of revival and by next year will be one of the fastest growing economies in the world.
“India’s economic revival will be steady and sustainable. The holiday season will further stimulate the economy, rekindling hopes for growth in the third and fourth quarters,” he said.
The Indian economy had contracted by a whopping 23.9 percent in the April-June quarter, hit by the Covid-19 crisis.
Defending the Center’s decision to impose the nationwide blockade to slow the spread of the coronavirus, Sitharaman noted that the government puts lives before livelihoods. The shutdown also gave time to do preparatory work to deal with the pandemic, he added.
Referring to the Nikkei Manufacturing Purchasing Managers Index, Nirmala Sitharaman said that economic activity had picked up in the country after the easing of pandemic restrictions and helped by various government measures.
“The unlocking is occurring steadily after the GDP contraction seen in the first quarter. We can witness a revival, particularly in the PMI, which shows the highest momentum since 2012,” he noted.
India’s manufacturing activity expanded at its fastest pace in more than eight years in September, a survey compiled by IHS Markit showed.
The finance minister further said that indicators show that the primary sector, agriculture-related segments and rural areas of India are performing very well.
“The demand for durable goods, agricultural equipment, tractors, vehicles is increasing. The festival season has started in India, as a result of which I hope the demand will increase and be sustainable as well,” he stressed.
Sitharaman further said that India continues with its policies to attract foreign investment in terms of lower taxes and ease of doing business.
(With contributions from the agency)
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