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Finance Minister of India Addressed the Media Yesterday on October 27, 2020. Indian Economy is Reviving despite having negative GDP, says FM.

Nirmala Sitharamat highlighted that the manufacturing PMI, a survey unit indicates a sign of reviving economy, in September rose to an eight-and-a-half-year high of 56.8.

Finance minister of India Nirmala Sitharaman on Tuesday addressed the conference that there was a clear sign of revival in the economy but the GDP growth may be count near to zero or negative in the current financial year.

She also added, “Indian will witness the negative or zero growth in the current fiscal but government is expecting India to be one of the fastest-growing economies next financial year, FY 21”. Center expects that domestic demand would join a sustainable uptick as a result of growing demand in rural India as well as a boost in demand in the current festive season.

The ongoing festive seasons will increase the market value and help to settle the thing to run the economy. We have gone through a major outbreak of pandemic that caused a destructive economy all over the world but the government is working on to revive economy, in fact, we are on the way to achieve it.

Sitharaman, while briefing to media said that reforms encouraging FDI inflow and India’s low corporate tax rates had led to a 13 per cent rise in FDI inflow in April to August, as contradicted the year-ago period, despite the pandemic.

“Companies which have set global standards in the government practices, also attracted the foreign investors. So India has a list of such companies which convince investors to invest during COVID-19 period and doing best practices to help the economy to boost,” she said.

 

The finance minister highlighted the survey report by saying that survey indicates that the primary sector, related sector of agriculture, and rural India are doing their level best and growing very well. There more positive signs in these sectors too. As a result, durable items have increased their reach to the market since the demand for agriculture products, equipment factors, and vehicles are all going up.

 

Manufacturing and infrastructure units are also doing very well. Infrastructure was the top priority of the government and the second priority was to ensure India’s surplus gains, vegetables so that India would not face any crisis and would be able to export these items too. We have been working export-ready India.

“Infrastructure sector attract the lot of fund which main aim at boosting agriculture exports by connecting the various ports and required infrastructure for good processing units,” she added.

Infrastructure is the backbone of any economy it connects various chains to help investors or dealers to look after sector where the investment is needed for the betterment of sustainable development.

Ms Sitharaman said India is regaining its fastest-growing economy tag and continuing with its policies to attract foreign investment in terms of lower taxation and ease of doing business.

However, India has been witnessing a lower growth rate before the outbreak of pandemic. Lockdown has made a major impact on GDP growth.

The Indian economy had contracted by a huge 23.9 % in the second quarter (Q2) hit by the COVID-19 pandemic and the government expects that the sustainable revival is going to surge in between Q3 TO Q4.

 

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