Nirmala Sitharaman on Economic Recovery: RBI's forex reserves have reached $560 billionThe economy is undergoing a strong recovery due to unrelenting and systematic reforms undertaken by the government, the Finance Minister Nirmala Sitharaman said.
"All economic indicators are revealing that recovery is clearly happening," the Finance Minister asserted, while addressing a press conference to announce additional stimulus measures to boost growthDetailing the strong economic revival, Ms Sitharaman highlighted that output is at the highest level in the last 9 years.
Thecomposite purchasing managers index (PMI) rose to 58.9 per cent in October versus 54.6 per cent in the previous month, registering strongest increase in output in close to nine years.Energy consumption growth trended higher in October at 12 per cent year-on-year,Moreover, bank credit growth has improved compared to last year, RBI's forex reserves have reached $560 billion andGST collections were at Rs 1.05 lakh crore in October, up 10 per cent on a year-on-year basis.She also noted that Moody's has reassessed India's economic outlook and revision to GDP forecast.Moody's hasrevised India GDP projection to -8.9 per cent for FY2020-21 from the earlier -9.6 per cent.
And the Reserve Bank of India has also predicted that theeconomy would grow in the third quarter.The government had rolled out the first stimulus package, called Atmanirbhar Bharat in May, to support the economy against the damage causedby the coronavirus pandemic-related nationwide lockdown.That package had included monetary and fiscal support worth Rs 21 lakh crore, which the government said was equivalent to 10 per cent of the country's gross domestic product (GDP).