The finance ministry on Thursday said that the economy is witnessing optimism in the ongoing quarter led by sustained improvement in high frequency indicators in October and November. It said that there were no fundamental or structural factors responsible for the contraction in the gross domestic product (GDP) by 23.9 per cent in the period between April and June.
The finance ministry’s Department of Economic Affairs (DEA) in its monthly economic review for November said, “The GDP contraction of 7.5 per cent in second quarter underlies a quarter-on-quarter surge in GDP growth of 23 per cent. This V-shaped recovery, evident at the half-way stage of FY21, reflects the resilience and robustness of the Indian economy.”
The fundamentals of the economy remain strong as gradual scaling back of lockdowns, along with the astute support of Atmanirbhar Bharat Mission has placed the economy firmly on the path to recovery. This is in alignment with economic recovery across the globe reflecting a world-wide pick-up in business and consumer confidence, report noted.
Source: Business Standard
