To propel demand and in turn consumption in the technically hit Indian economy which has entered recession in Q2FY21, FM Nirmala Sitharaman will likely announce a stimulus package today. But before she puts out the state of the current Indian economy and how it has fared on the basis of few positives achieved on some of the parameters.
There is a strong recovery in economy and the coronavirus situation is also easing.
1. Energy consumption has increased 12% YoY
2. GST collection has also increased 10% YoY for the month of October
3. Daily freight tonnage has also increased 20% YoY
4. BAnk credit grew 5% YoY as on October 23, 2020
5. Net FPI investment is positive
6. Forex is like never before at $560 billion
RBI will give out monthly report on economic condition and it is anticipated that a strong rebound will be witnessed in Q3 itself and the revival is not just owing to pent-up demand, it will be a sustainable rebound.
The announcement have come close on the heels of the centre's approval of the PLI scheme for 10 more sectors with a total outlay pegged at Rs. 1.46 lakh crore over a 5-year period, and the maximum share is for the automobile and auto component sector.
As per a Reuters report, the stimulus ahead of Diwali is likely to be the tune of Rs. 1.48 lakh crore which will enable India come out from its historic contraction seen in June ended quarter of 24%. Earlier in mid-October, the Finance minister stressed that the centre is evaluating the economy from a mid-year perspective and is open to announce another stimulus as per demands from several industry bodies.