Indian economic growth likely touched a record high in the quarter through June, reflecting a very weak base last year and a rebound in consumer spending. Data shows that the Index of Industrial Production (IIP), automobile sales, exports, fuel consumption, core imports, and railway freight cargo have been growing in double-digits so far this fiscal, indicating a sharp rebound in growth.
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Significant rebound in formal sector hiring in June
Formal sector hiring rebounded significantly in June, after registering a dip in May, as the second wave of the pandemic ebbed out resulting in an uptick in economic activity.
Ashima Goyal on India’s economic health
Despite the Covid-19 severe shock, India’s macroeconomy is more healthy and ready for faster growth than it has been for a long time. That recovery from both the first and second waves was faster than expected points towards inherent strengths of the economy,” Ashima Goyal said.
We have projected a GVA YoY growth of 20 per cent and a GDP growth of 22-23 per cent for Q1FY22
– Suman Chowdhury, Chief Analytical Officer, Acuite Ratings & Research
Slower recovery pace in August
The Nomura India Business Resumption Index (NIBRI) rose to 102.7 for the week ended August 29 from 101.3 the previous week, Japanese financial holding company Nomura said on Monday. However, the pace of recovery slowed in August as the index was up 5.6 percentage points (pp) after a 17.1 pp rise in July and a 15 pp rise in June.
FDI equity inflows more than double in Q1
Total FDI inflow rose to $22.53 billion during the first quarter of FY22 as against $11.84 billion in the same period last year, the commerce and industry ministry said in a statement. Total FDI comprises equity inflows, reinvested earnings and other capital.
Crash in Tomato prices
- Tomato prices in wholesale markets in most producing states have crashed to as low as Rs 4 per kg amid supply glut, government data showed.
- In fact, the wholesale prices of tomato in 23 growing centres out of 31 monitored by the government were down by 50 per cent from the year-ago period or below three-year seasonal average.
Exports from SEZs up 41.5 per cent
Exports from special economic zones (SEZs) grew by about 41.5 per cent to Rs 2.15 lakh crore during the April-June quarter of the current fiscal on account of healthy growth in pharmaceuticals, engineering, and gems and jewellery sectors, as per official data. SEZs are key export hubs which contribute about one-fourth of the country’s total outbound shipments.
India’s business resumption activity
Business resumption activity continued its northward journey and reached a new high, much above the pre-pandemic levels for the week ended August 29, a Japanese brokerage said on Monday. The Nomura India Business Resumption Index rose to 102.7 for the week ending 29 August from 101.3 in the prior week, as per the…
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