Corporate lobbyist Deepak Talwar says Indian economy can bounce back

Indian economy is one of the hardest hit in the world Based on the data available over 40 million people could have lost employment GDP Plunged by 239 percent in the first quarter of FY202021 reflecting the economic toll due to monthslong lockdownA seasoned economic analyst has said that the Indian economy severely impacted during the lockdown period could end up being better than projected because of a host of sequential improvements in key sectorsCorporate lobbyist Deepak Talwar said some high frequency economic indicators suggest that not only is the economy showing sequential improvement it might actually have surpassed last years levels albeit in some areas This is a very good sign for the worlds second most populous nation One should wait for the ongoing festive season to end before reaching any conclusions on the economys growth prospects for the full year said TalwarDeepak Talwar said that three economic indicators for October suggest that economic activity received a big boost last month Goods and Services Tax collections crossed the psychological Rs 1 lakh crore mark for the first time since the imposition of a nationwide lockdown in the month of March Purchasing Managers Index PMI for manufacturing reached its highest ever value of 589 in October This is the third consecutive month when PMI manufacturing has shown a sequential improvement and stayed above 50 One must remember that a PMI greater than 50 signifies coming expansion in economic activity The Finance Minister is open to the possibility of a second stimulus to the economy There is some market expectation that as the economy has opened up more now the government would be in a position to announce another round of stimulusHe also said that the only longterm driver of sustained economic growth is demand October and November could see a onetime boost in spending because of the festive demand A good kharif harvest which is already underway could signal a sustained rural boost to demand in the economy The December round of RBIs Consumer Confidence Survey which includes indicators on both essential and nonessential consumer spending will offer a crucial insight on what is happening to consumer demand in the economy Deepak Talwar addedIndias strategy of dealing with the Covid19 crisis has paid off and the countrys economy is set to bounce back The recent monetary policy assures that the government and the regulator will do everything it takes to keep the economy afloat There has been a pickup in eway bill volumes improvement in revenue earning freight traffic of major commodities positive growth in exports and most significantly increase in the September GST collections to almost preCovid19 level he addedIndia is the second worsthit country in the world following the United States with around 85 million coronavirus cases Despite a raging pandemic and an unprecedented economic contraction for two consecutive quarters the economy of the nation is expected to bring traction in the light of the upcoming festive season and bumper agricultural produceDeepak Talwar is a corporate lobbyist and an entrepreneur who is well known for bringing a significant share of FDI in IndiaCatch up on all the latest Mumbai news crime news current affairs and a complete guide from food to things to do and events across Mumbai Also download the new midday Android and iOS apps to get latest updates MidDay is now on Telegram Click here to join our channel middayinfomedialtd and stay updated with the latest newsThis story has been sourced from a third partysyndicated feed agencies Midday accepts no responsibility or liability forits dependability trustworthiness reliability and data of the text Middaymanagementmiddaycom reserves the sole right to alter delete or removewithout notice the content in its absolute discretion for any reasonwhatsoever