According to a Finance Ministry statement, the festive season recovered its lustre with a surge in sales and increased the pace of economic recovery in India, as the number of new COVID-19 infections fell every day and immunizations surpassed 100 crores.
Daily COVID- 19 according to the data, the number of cases dropped from 32,000 in September to 18,000 in October. According to the Department of Economic Affairs’ monthly review for September 2021, Diwali sales reached a decade-high of Rs 1.3 lakh crore in October, citing the Confederation of All India Traders.
According to the finance ministry report, while the global economic recovery is now being hampered by supply limitations and rising input costs, there are signs of rebound in India as a result of vaccine distribution and the restart of economic activities.
The International Monetary Fund and the World Trade Organization increased their projection for global growth prospects in October as mobility constraints loosened around the world, which bodes good for Indian exports.
“The growth internationally will rise to 5.8% in 2021 and 4.9% in 2022, according to the IMF’s October 2021 report, resulting in coterminous world trade growth of 9.7% and 6.7%, respectively.”
“The WTO’s October prediction also confirms favourable trade forecasts, which are bolstered by a rebound in global economic activity and vaccination distribution,” according to the study.
The Index of Industrial Production increased in August to 103% of its pre-pandemic August 2019 level, according to the report, with manufacturing showing full recovery in most user-based categories. “The capital goods category saw the most steepest increase, signalling a surge in investment.” Coal, natural gas, steel, cement, and power are among the eight core industries whose output has now surpassed the pre-COVID level of September 2019.
The Indian economy would have recovered faster if severe rains had not hampered building, mining, and electricity demand, according to the finance ministry. Aside from the external sector, merchandise exports in the fiscal year 2021-22 surpassed $30 billion for the seventh month in a row.