NEW DELHI: The worst seems to be over and the agriculture sector will provide a cushion for the coronavirus-hit economy this fiscal as there are prospects of good monsoon, finance ministry said in a report on Tuesday.
India is well on the path of recovery from a trough in April, ably supported by proactive Government and Central Bank policies, the Macroeconomic Report for July, released by the Economic Affairs Department said.
“With India unlocking, the worst seems to be over for the economy as high-frequency indicators recovered in June 2020 from unprecedented troughs in April; however, risks on account of rising COVID-19 cases and intermittent State lockdowns remain,” it said.
It further noted that the rise in COVID-19 cases and subsequent intermittent lockdowns make the recovery prospects fragile and called for constant and dynamic monitoring.
Pinning hopes on the farm sector, the report said, agriculture is set to cushion the shock of the COVID pandemic on the Indian economy in 2020-21.
“With the forecast of a normal monsoon at 102 per cent of long-period average (LPA), agriculture, which contributes about 15 per cent of total gross value added, is set to cushion the shock of COVID pandemic on the Indian economy in 2020-21,” it said.
Source: The Economic Times
