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India’s economy is seeing a ‘strong recovery’ take root, Sitharaman says

NEW DELHI (Reuters) – India’s economy is seeing a strong recovery taking root, Finance Minister Nirmala Sitharaman said on Thursday, citing data that included an increase in tax collections for goods and services.

Finance Minister Nirmala Sitharaman addressing a press conference on Economic issues, in New Delhi on November 12, 2020.

The recovery is due not only to pent-up demand, Sitharaman told a news conference, ahead of announcing a new set of stimulus measures.

Sitharaman said increased energy consumption, a rise in the purchasing managers’ index, improved bank credit and a stock market surge all suggested stimulus measures taken so far had begun to help the economy bounce back.

The Indian economy, which the International Monetary Fund singled out as a global bright spot only a few years ago, was the worst performing major economy globally in the April-June period, contracting 23.9% amid a stringent lockdown to curb the spread of the pandemic.

The economy is expected to contract close to 10% in the fiscal year to March 2021, but Sitharaman noted that the Reserve Bank of India had predicted a strong likelihood that the economy may begin to show growth in the ongoing fiscal third-quarter.

Sitharaman said the government is also launching a scheme to incentivise the creation of new jobs, in a bid to fuel a rebound.

Despite Sitharaman’s buoyant tone, markets weakened as the press conference progressed on Thursday. The NSE Nifty 50 index fell 0.92%, while the S&P BSE Sensex fell 1% by 0814 GMT. The indexes had been down 0.3% and 0.4% respectively before the conference began.

Disclaimer :- This story has not been edited by The Sen Times staff and is auto-generated from news agency feeds. Source: Reuters


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