Union Minister of State for Entrepreneurship, Skill Development, Electronics & Technology Rajeev Chandrasekhar said that the country was demonstrating unprecedented resilience and robust economic bounce back, thanks to policies and responses to the pandemic by the Narendra Modi government.
In a shot in the arm for the government, vital signs of an economic rebound have emerged in the last three months with the Gross Domestic Product growing by over 20 per cent compared to a year earlier.
The GDP had shrunk by 24.4 per cent in the April-June quarter in FY2021 due to Coronavirus lockdowns bringing economic activity in the country to a grinding halt.
Taking to Twitter, Union Minister of State for Entrepreneurship, Skill Development, Electronics & Technology Rajeev Chandrasekhar said that the country was demonstrating unprecedented resilience and robust economic bounce back, thanks to policies and responses to the pandemic by the Narendra Modi government.
Our Economy is recovering back, faster than expected 20% YoY growth - to Pre-Covid levels - despite the severe hit of Covid first wave n second wave.
Thread 👇🏻 pic.twitter.com/vvLZYoy18N
The data released by Chief Economic Adviser Dr K V Subramanian is bang in line with a survey conducted by Reuters where 41 economists had expected the GDP to rise 20 per cent in the three-month period despite the country being hit by the second wave of Coronavirus.
The Reuters report further noted that this would be the country's fastest growth since quarterly data started being released in the mid-1990s.
The government data also showed how corporate performance has seen the highest growth in gross sales in 5 years with over 130 per cent growth. Also at record high were net profit growth (highest in 31 years) at over 130 per cent followed by expense growth (around 120 per cent) signals spill-over downstream to small firms.
Industry n Services are recovering strongly but still below pre-Covid levels.
Delay bcoz of SHARP hit of second wave, but Record new company formation growth shows that its a faster than expected recovery pic.twitter.com/yYDCdkOOQW
Some of the other key highlights of India's V-shaped economic recovery include:
• Gross Non-Performing Assets have declined from 11.2% (March 2018) to 7.4% (March 2021)
• Net NPA has come down from 5.9% (March 2018) to 2.3% in (March 2021)
• Public Credit Registry has risen from 62.7% (March 2018) to 84% (March 2021)
* Net profits of Public Sector Banks went up to Rs 31,816 crore
MoS Rajeev Chandrasekhar said that the agriculture sector had grown stronger as compared to pre-Covid levels due to many pre-Coronavirus and present policies supporting the farmers by the Narendra Modi government.
However, the minister said it was critical for the country to avoid a third wave to maintain momentum. He compared the situation with a company whose part turnover had been lost for two years irrecoverably.
"July also saw the strongest tax collections in 18 years, reinforcing what everyone knows and acknowledges; that the last seven years of Narendra Modi government has made our economy stronger, more diversified and resilient," MoS Rajeev Chandrasekhar said.