After Witnessing Severe Damage, Indian Economy is Gradually Recovering - IMF

The economic impact of COVID-19 was very distressing according to data all over the world. No one has been spared of its ill effects. Economies of about 100 plus countries have been destroyed out of which some of them have asked for monetary help from International Monetary Fund (IMF). Almost all the businesses across the world including transportation, hospitality, entertainment, and other have seen a major negative impact. But from the mid Q3 and for the remaining Q4, the condition is apparently getting better.

The IMF stated on Thursday that the India’s economy which was severely affected by the coronavirus pandemic, is gradually recovering. India’s economy recovered faster than expected in the September quarter as a pick-up in manufacturing helped GDP clock a lower contraction of 7.5 percent and held out hopes for further improvement on better consumer demand.

“India has indeed been severely affected by the pandemic but is gradually recovering,” IMF chief spokesperson Gerry Rice told reporters. Fiscal, monetary,

India’s economy recovered faster than expected in the September quarter as a pick-up in manufacturing helped GDP clock a lower contraction of 7.5 percent and held out hopes for further improvement on better consumer demand

and financial sector measures announced to date provided much-needed support to the economy, including businesses, agriculture, and vulnerable households, Gerry said in response to a question on the IMF’s assessment of India’s economy during the coronavirus pandemic.

“To further support growth, we believe the Indian authorities should prioritize swift implementation of the existing support programs and may need to consider expanding their scope, as warranted,” stated Gerry. In her address to the International Monetary and Financial Committee (IMFC), the ministerial-level committee of the IMF, through video conference, Union Finance Minister Nirmala Sitharaman had said that a V-shaped pattern of recovery is being seen in several high-level indicators. The Indian economy is witnessing a V-shaped recovery as the Gross Domestic Product (GDP) has recorded a quarter-on-quarter growth of 23 percent in the July-September quarter of this fiscal, according to the Finance Ministry’s latest Monthly Economic Review.