January 17, 2021

‘Bank recovery in economic activity, increased mobility’

After the Govt vaccination, the resumption of economic activity and increased mobility are expected to pave the way for economic recovery, the Finance Ministry said in its monthly economic report. Recognition of the long-awaited Govt-19 vaccine strengthens confidence in health and economic fronts, which has boosted market sentiment and the potential for a quick recovery in emerging economies and the potential for growth through vaccine availability, and vaccine opportunities are expected to increase oil demand in the country.

Despite the festive season and the onset of winter, the better management of the Covit-19 spread, along with the continuous improvement in high frequency indicators and the relaxation of locking controls along with the V-shaped recovery, differentiates the Indian economy from riding against the Covid wave. , ”The report said.

The monthly Economic Survey for December found that vaccine approval and the launch of vaccine drivers in countries continue to boost global cases, boosting confidence in health and economic sectors. “The adoption of vaccines around the world has sparked optimism for economic recovery in the new year. Post-vaccination, resumption of economic activity and increased mobility are expected to pave the way for economic recovery after the Covid-19 epidemic,” it said.

“India has been successful in curbing the weekly / daily epidemic, recovery rate (now around 95 per cent) and one of the lowest mortality rates in the world. Govt urges continued monitoring of appropriate ‘behavior’, citing some high-frequency data, and reports that continued growth in BMI production, sustained improvement in electricity demand, continued improvement in generated electricity bills, and sustainable improvement in business and industrial operations have already been confirmed. Govt sizes.

Monthly GST collections reached their record level in December. The total GST revenue collected in December 2020 was Rs 1,15,174 crore, the highest since its release on July 1, 2017.

The report said that despite the Reserve Bank’s average daily net absorptions in December compared to the previous month, the liquidity situation has improved as the accumulation of dollars with the growth of the currency in circulation has increased the liquidity in the banking system.

Credit growth improved sharply as reflected in strong non-food credit growth and overall credit growth, thanks to the Emergency Credit Tax Guarantee Scheme (ECLGS), which continues to support strong lending to MSMEs at Rs. 2.05 lakh crore to 80.93 lakh borrowers under ECLGS 1.0.