7th December 2020, 09:18
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| | Re: India is now officially in recession
India can see economic recovery from next year, says Finance Minister.
Union Finance Minister Nirmala Sitharaman on Friday said that India can see an economic recovery from next year backed by a coronavirus vaccine, reported the Hindustan Times. Her comments came after Prime Minister Narendra Modi, citing experts, told political parties that a vaccine against Covid-19 could be available for roll-out in the next few weeks. |
The finance minister also spoke about the recovery in the 2020-’21 second quarter. The economy had contracted by 7.5% in the quarter to September, registering an improvement from the 23.9% fall during the previous quarter.
Sitharaman said the signs of a pick-up was because of the expansion in the core sectors and not just due to pent-up demands and the festival season. “Recovery is consistently happening in the last two months…you hear core sector industries, cement, iron and steel, integrated plants are all going in for expansion, not just in one unit but across the country, you’re hearing of expansion,” she said.
She also said that the revenue from the Goods and Services Tax going beyond Rs 1 lakh crore for the second consecutive month in November was a clear indication that economic activity was going back to normal. She maintained that the GST was one of the best things for India’s federal system, despite the government struggling to meet the revenue shortfall.