Green shoots of economic revival visible now: Finance Ministry

New Delhi, June 23

The Finance Ministry on Tuesday cited “green shoots” of recovery in agriculture, manufacturing and services sectors, and said the prompt policy measures taken by the government and RBI have helped reinvigorate the economy with minimal damage.

‘Farm sector foundation of Indian economy’

Though the GDP contribution of the sector may not be very large (in relation to industry and services), its growth has a very positive impact on the large population dependent on agriculture. Further, the recent landmark reforms announced in the sector will go a long way in building efficient value chains and ensuring better returns for farmers — Finance Ministry

Stating that agricultural sector remains the foundation of the Indian economy, the ministry said a normal monsoon, as has been forecast, should support the rebooting of economy.

“Though the GDP contribution of the sector may not be very large (in relation to industry and services), its growth has a very positive impact on the large population dependent on agriculture.

“Further, the recent landmark reforms announced in the sector will go a long way in building efficient value chains and ensuring better returns for farmers,” the ministry said.

Early green shoots of economic revival have also emerged in May and June with real activity indicators like electricity and fuel consumption, inter and intra-state movement of goods, retail financial transactions witnessing pick up, it said, adding India becoming the world’s second largest manufacturer of personal protective equipment (PPE) within two months shows the resilience of the manufacturing sector.

“The Government and the RBI have taken prompt policy measures in a calibrated manner to reinvigorate the economy at the earliest with minimal damage.... The commitment of the Government towards both structural reforms and supportive social welfare measures will help build on these ‘green shoots’,” the ministry said. — PTI