The Economic Survey 2019-20 tabled in the Parliament on Friday has projected a 6%-6.5% growth for 2020-21, according to news agency PTI. The projection indicates that the economy has bottomed out.
India’s gross domestic product (GDP) grew at 4.5% in the second quarter of the current financial year, the lowest since March 2013. According to the National Statistical Office’s (NSO) first advance estimates, India’s GDP is expected to grow at 5% in 2019-20, the lowest since 2008-09.
The sign of recovery is also shown in the improved collection of Goods and Services Tax (GST), which is a tax on consumption and directly reflects the mood of the market. Officials expect the GST collection to touch a record in January 2020, maintaining the uptrend since November last year.
The GST collections were above Rs 1 lakh crore for two consecutive months – November and December 2019 after it had plunged below Rs 1 lakh crore mark for three straight months – August, September and October 2019.
The automobile sector, a weathervane of economic sentiment and also industrial health, is showing confidence as Maruti Suzuki India (MSI), country’s largest car maker, on Monday raised prices of its select models.
{{/usCountry}}The automobile sector, a weathervane of economic sentiment and also industrial health, is showing confidence as Maruti Suzuki India (MSI), country’s largest car maker, on Monday raised prices of its select models.
{{/usCountry}}The Hindustan Times first reported about the imminent economic recovery on January 3. The RBI’s Monetary Policy Committee (MPC) in its December meeting had expected GDP growth to start a recovery in the second half of the current fiscal year. The MPC had projected GDP growth in the second half to be in the range of 4.9%-5.5% against 4.8% between April and September last year.
The data scan by the economic survey suggests that the economic slowdown may be tapering with green shoots visible in a few quarters of the economy.
“All eyes are now on tomorrow’s budget as the government walks a tightrope of balancing growth and inflation without raising fiscal deficit much,” Majumdar said