Economy showing signs of revival, says Finance Ministry
Finance Minister Nirmala Sitaraman
New Delhi: The Finance Ministry on Friday said the economy has started showing signs of revival from the impact of the second wave of the Covid-19 pandemic on the back of targeted fiscal relief, monetary policy and a rapid vaccination drive.
"The broad-based economic relief package, extended to mitigate the second wave, amounted to Rs 6.29 lakh crore. RBI continues with its efforts to calm the nerves of the market and revive sectors with both backward and forward linkages and multiplier effects on growth," the ministry said in its monthly economic review.
To stimulate the economy and ease the financial impact of the coronavirus pandemic and lockdown, Finance Minister Nirmala Sitaraman last month announced eight economic measures amounting to Rs 6.29 lakh crore to provide relief to individuals as well as businesses in the country. Apart from eight relief measures announced in health and other worst affected sectors, Sitharaman announced a stimulus package for the tourism industry, which included five lakh tourist visas to be issued free of charge, once the government resumes issuance.
The total financial implication of the scheme will be Rs 100 crore. Resilient tax collections of the central government in the first two months of FY 2020-21 and sustained momentum in capital expenditure, particularly in the road and rail sector, the report said, augurs well for continued economic recovery driven by capital expenditures. The report further added that the recently announced economic relief package was "expected to further oil the wheels of the Capex cycle via implementation of the PLI scheme and streamlining of processes for PPP Projects and Asset Monetisation".
Consumption sentiment is expected to pick up with further enhancement of employment support under Aatmanirbhar Bharat Rozgar Yojana (ANBRY), targeted support to the urban poor through the credit guarantee scheme for on-lending by micro-finance institutions and wider Bharat-Net digitisation coverage, the economic review for June said.