In India, economic activity has picked up the pace, with moderate stiffening of the Coronavirus curve failing to prevent a uniform uptick in customer sentiment reinforced by the immunisation drive. The finance ministry has announced in its February report of the economy.
The statement tells that the positive GDP growth in Q3 FY21 has appended the positive feeling for the first time since the pandemic began. The ministry considers the economy to close the year with enterprise levels higher than estimated in the 2nd advanced GDP assessments.
The Reserve Bank of India’s industrial prospect survey in Q3 had also reaffirmed this expectation, with respondents showing a strengthening of production, order books and trade as lockdown restraints ease.
The increase of services activity in 2021 is especially noteworthy as people overcoming the pandemic’s fear have exhibited an inclination towards improved mobility despite Covid-related perils, the report stated.
Prominently, the second advance assessments of national income for FY21, recently issued by NSO, indicate real GDP reduction at 8 per cent, which was greater than the actual GVA reduction of 6.5 per cent. The ministry says this is not a common occurrence. The report was quoted as: “Real GDP increase has been greater than actual GVA growth since 2011-12 when the estimation of National Income in India (NII) moved to a new foundation year”.
Addressing the most recent GST numbers, the report said a continued momentum in GST revenue acquisition, with year-on-year (Y-o-Y) growth of 7%, valuing for Rs 1.13 lakh crore in February, exhibits an uptick in business.
Nevertheless, the increase of outstanding balance of registered commercial banks is just commencing to pick up, mainly focused on MSMEs on the back of the emergency credit line guarantee project.