New Delhi: Finance Minister Nirmala Sitharaman on Thursday said the Indian economy was witnessing a strong recovery.
Addressing the media here, Sitharaman cited several data, including the growth in Composite Purchase Managers Index (PMI), GST collections, FDI inflow and the stock markets’ recent surge to record highs to show a strong revival of the Indian economy.
She also said that bank credit has grown by 5.1 per cent on a year-on-year basis. FDI inflows in April-August stood at $35.37 billion, 13 per cent higher on a year-on-year basis.
The minister noted that prominent economists have suggested that the rebound has not come only due to pent-up demand but also because of “strong economic growth”.
She added that Moody’s also has scaled up India’s GDP growth estimate for the FY22 to 8.6 per cent now from 8.1 per cent earlier.
The RBI in its latest monthly bulletin said that India has technically entered into a recession with a likely contraction in its GDP during the July-September period.
RBI’s Economic Activity Index estimates that India’s GDP growth for the second quarter of the current financial year was negative and the GDP contracted by 8.6 per cent during the quarter.
The Central bank, however, noted that growth is likely in the third quarter of the current quarter, which was also cited by the Finance Minister to show a revival of the Indian economy.