NEW DELHI: The Finance Ministry’s monthly economic report states, after having successfully managed the first wave of the coronavirus pandemic, India is well prepared to combat the scourge of the second wave.
A Finance Ministry report has exuded confidence in the Indian economy and termed the economic recovery as resilient citing improvement in high-frequency indicators. The Monthly Economic Review for March 2021 by the Department of Economic Affairs (DEA) said that the agricultural sector remains the bright spot of Indian economy with foodgrains production touching 303.3 million tonnes in 2020-21 beating record production levels for the fifth consecutive year in a row.
Further, Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has acted as a strong pillar to insulate the rural economy by generating all-time high employment of 383.8 crore person days during 2020-21, 44.7 percent higher compared to the previous year. "Despite the surge in cases, the recovery in the economy is resilient with sustained improvement in the majority of high-frequency indicators," it said. The report noted that India's PMI Manufacturing Index of 55.4 in March indicated some loss of momentum compared to February. However, manufacturing sector conditions continue to improve sharply, outpacing the long-run series average with firms scaling up production and witnessing an upturn in sales. It sees strengthening demand in auto sales, power consumption and GST figures.
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