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Worst seems to be over for India: Department of Economic Affairs
Aug-05-2020

The Department of Economic Affairs in its monthly macroeconomic report has said that after Prime Minister Narendra Modi announced a nationwide lockdown to arrest the spread of coronavirus, India’s economy trembled in the month of April. While the businesses and industries came to a standstill, the economy struggled for revenue sources. However, the worst may now be over for India and the road ahead will take the economy back on the track.

It mentioned with India unlocking, the worst seems to be over as high-frequency indicators show an improvement from the unprecedented trough the economy had hit in April 2020. It added Indicators such as Index of Industrial Production (IIP), Purchasing Managers Index (PMI), power generation, production of steel and cement, railway freight, traffic at major ports, air cargo and passenger traffic, e-way bill generation capturing the inter-state movement of goods, consumption of petroleum products, and motor vehicle registration, have shown improvements.

The report underlined that the agricultural outlook improving and the recent landmark reforms announced in the sector are well-timed. However, it said risks on account of rising COVID-19 cases and intermittent state lockdowns remain,. The future economic recovery of India is believed to be crucially linked to how the COVID-19 infection curve evolves across the states.

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