Prime Minister Narendra Modi on Saturday said that although “India has been through ups and downs in 2020,” the country’s economic recovery from the setback of Covid-19 is “faster than expected” and “economic indicators are encouraging.”
Addressing the 93rd Annual Convention of FICCI, Modi emphasised on the priority given to “saving lives” during the pandemic and said that “the government’s policies and actions were oriented towards that.” Therefore, despite a rocky year for the Indian economy, “there is a roadmap for recovery,” Modi added.
On the foreign capital inflow front, Modi said that even during the pandemic, the country saw record foreign direct investments (FDIs) and foreign portfolio investments (FPIs).
India witnessed a better-than-expected economic recovery in the second quarter, therefore raising hopes for a better third quarter and subsequently a positive growth in the fiscal year of 2021-22.
The Indian economy witnessed a V-shape recovery as GDP recorded a quarter-on-quarter growth of 23 per cent in the July-September quarter, according to Finance Ministry’s Monthly Economic Review. The decline in the GDP narrowed to 7.5 per cent in the second quarter of this financial year, over 23.9 per cent in April-June quarter.
The Monthly Economic Review for the month of November said “this V-shaped recovery, evident at the half-way stage of 2020-21, reflects the resilience and robustness of the Indian economy. The fundamentals of the economy remain strong as gradual scaling back of lockdowns, along with the astute support of Atmanirbhar Bharat Mission has placed the economy firmly on the path of recovery.”
The GDP during the April-June quarter (Q1) had contracted by 23.9 per cent, the worst contraction in the history of the Indian economy, due to the nationwide Covid-19 lockdown during the bulk of the quarter.
In his address, the prime minister also touched on the recent farm laws, saying that these reforms would allow farmers to access new markets and technology, thereby increasing investments in India’s agriculture sector. Modi’s comments come at the backdrop of farmer protests witnessed against the three controversial farm laws across the nation.
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