With the return of consumer confidence, robust financial markets, an uptick in manufacturing and exporters braving it out in the global market with a never-say-die spirit, the Indian economy is showing decisive signs of a 'V-shaped' recovery in 2021, according to the Associated Chambers of Commerce and Industry of India (ASSOCHAM), which expects immense accruals of economic benefits from the COVID-19 vaccination programme about to be rolled out.
"The high-frequency data is a strong pointer to a V-shaped recovery in 2021 with the seeds bursting into green shoots over the last two months of 2020 itself," ASSOCHAM secretary general Deepak Sood said.With the return of consumer confidence, robust financial markets, a manufacturing uptick and exporters braving it out in the global market with a never-say-die spirit, India's economy is showing decisive signs of a 'V-shaped' recovery in 2021, according to ASSOCHAM, which expects immense accruals of economic benefits from the COVID-19 vaccination programme.#
India's GDP is estimated to contract by a record 7.7 per cent during 2020-21 as the pandemic severely hit the key manufacturing and services segments, as per latest government projections.
"With India about to roll out its vaccination programme with approvals of the two vaccines, the accruals of the economic benefits would be significant, especially to sectors such as hospitality, transportation, entertainment, which were hit hard during the pandemic," Sood was quoted as saying by a news agency.
According to the industry chamber, the most definitive of the data is the record collection of ₹1.15 lakh crore in goods and services tax (GST) during December.
"The state-wise collection showed the fightback spirit in consumer confidence. Illustratively, the largest consumption state of Maharashtra, which was amongst the severely affected by the COVID-19 pandemic, has posted a healthy growth of seven per cent in GST collection; even as the total GST mop-up was up 12 per cent year on year," Sood said. The budget for 2021-22 would be a major catalyst, he added.
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