Indian economy on recovery path: Ministry of Finance

12 Oct 2021 CW Team

The September review concluded that the economy is progressing well, citing sustained and robust growth in agriculture, a sharp rebound in manufacturing and industry, the resumption of services activity, and buoyant revenues.

The external sector continues to be a bright spot for India's recovery, with merchandise exports breaking the $30 billion barrier for the sixth month in a row in the fiscal year 2021-22.

With the merchandise trade deficit rising in September, there is clear evidence that India's consumption and investment demand is picking up, as well as the external debt-to-GDP ratio remaining comfortable, falling to 20.2% at the end of June 2021 from 21.1% at the end of March 2021.

The rate of growth of bank credit was 6.7% YoY in the fortnight ending September 10, 2021, compared to 5.3% in the previous year's corresponding period, according to the report, in line with growth impulses seen across the economy.

Consumer price index (CPI) inflation retreated to a four-month low of 5.3% in August 2021, clearly demonstrating that inflationary tendencies are pandemic-induced and transitory, thanks to the restoration of supply chains, improved mobility, and softening food inflation.

Volatile crude oil prices on the international market, as well as upward-bound prices for edible oils and metals, may continue to be a source of concern.

G-Sec yields were also stable in September 2021, thanks to a comfortable level of systemic liquidity and an easing of inflationary pressure. In comparison to August, the 10 year yield remained at 6.2%.

In August and September, high-frequency economic indicators showed continued improvement in power consumption, rail freight activity, e-way bills, robust GST collections, highway toll collections reaching a 21-month high, sequential increases in air freight and passenger traffic, and a quantum leap in digital transactions, indicating a broad-based recovery.

Image Source

Also read: India needs major banks to meet economic shift: Finance Minister

Strategic reforms and a rapid vaccination drive has put the country on the road to recovery by allowing the economy to navigate the ravaging waves of the Covid-19 pandemic according to the Ministry of Finance's monthly economic review. The September review concluded that the economy is progressing well, citing sustained and robust growth in agriculture, a sharp rebound in manufacturing and industry, the resumption of services activity, and buoyant revenues. The external sector continues to be a bright spot for India's recovery, with merchandise exports breaking the $30 billion barrier for the sixth month in a row in the fiscal year 2021-22. With the merchandise trade deficit rising in September, there is clear evidence that India's consumption and investment demand is picking up, as well as the external debt-to-GDP ratio remaining comfortable, falling to 20.2% at the end of June 2021 from 21.1% at the end of March 2021. The rate of growth of bank credit was 6.7% YoY in the fortnight ending September 10, 2021, compared to 5.3% in the previous year's corresponding period, according to the report, in line with growth impulses seen across the economy. Consumer price index (CPI) inflation retreated to a four-month low of 5.3% in August 2021, clearly demonstrating that inflationary tendencies are pandemic-induced and transitory, thanks to the restoration of supply chains, improved mobility, and softening food inflation. Volatile crude oil prices on the international market, as well as upward-bound prices for edible oils and metals, may continue to be a source of concern. G-Sec yields were also stable in September 2021, thanks to a comfortable level of systemic liquidity and an easing of inflationary pressure. In comparison to August, the 10 year yield remained at 6.2%. In August and September, high-frequency economic indicators showed continued improvement in power consumption, rail freight activity, e-way bills, robust GST collections, highway toll collections reaching a 21-month high, sequential increases in air freight and passenger traffic, and a quantum leap in digital transactions, indicating a broad-based recovery. Image Source Also read: India needs major banks to meet economic shift: Finance Minister

Infrastructure Transport

16 Dec 2025

NFR Invites EPC Bids for Dimapur–Kohima Broad Gauge Project

Northeast Frontier Railway (NFR) has invited bids for an engineering, procurement and construction (EPC) contract linked to the Dimapur (Dansiri)–Kohima (Zubza) new broad gauge (BG) line project, a key infrastructure initiative aimed at strengthening rail connectivity in the Northeast.According to the tender details, the scope of work includes construction of reinforced cement concrete (RCC) substructures and composite girder superstructures for a viaduct at Pherima Yard. The contract also covers a range of associated and ancillary works required for the execution of this section of the proj..

Infrastructure Energy

16 Dec 2025

Gujarat Launches Urja Sanvardhanam for Smarter Power Demand Planning

Gujarat’s Energy Minister Rushikesh Patel said the newly launched digital platform Urja Sanvardhanam will play a crucial role in advanced electricity demand planning and strengthening the state’s power network, aligning with India’s vision of becoming a developed nation by 2047. According to an official statement, the Gujarat government has introduced the online monitoring system in response to steadily rising electricity demand across both rural and urban regions. The platform is designed to enable efficient management and real-time control of the state’s power supply by continuo..

Infrastructure Energy

16 Dec 2025

UPPCL Clarifies Smart Meter Consent, Dismisses Misreading of Tariff Order

The Uttar Pradesh Power Corporation (UPPCL) has rejected claims that its tariff order bars the conversion of smart meters to prepaid mode without consumer consent, stating that such interpretations are incorrect and misleading.Clarifying its position, UPPCL said the tariff order merely records that public interest litigations challenging mandatory prepaid smart meters are pending before various High Courts. In view of this, the Electricity Regulatory Commission has emphasised that consumers must be provided with accurate and functional meters, irrespective of whether they operate in prepaid or..