According to some indicators, the improvement in the country’s economy is not sustainable.
After the end of the lockdown implemented to prevent the spread of corona virus, the Indian economy is slowly improving. But, according to the Brickwork Ratings, it would be difficult to maintain continuous improvement if the government does not take concrete steps immediately.
- Last Updated:October 18, 2020 7:51 PM IS
8-year most manufacturing PMI
According to the report of Brickwork, it would be difficult to maintain a state of continuous improvement in the country’s economy if concrete steps are not taken immediately by the Central Government. The manufacturing PMI was 52 per cent in August 2020, which rose to 56 per cent in September. This is the highest in 8 years. The GST collection in September 2020 was Rs 95,480 crore, up 3.8 percent from the same period last year. Sales of passenger vehicles have increased by 21 percent. Railway traffic has also registered a growth of 15 percent. Exports of engineering goods, petroleum products, medicine and readymade garments grew by 5.3 percent.
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Despite the increase in the performance of many sectors of the country’s economy, rating agency Brickwork Ratings says that this improvement is only in the short run. In the second quarter of the current financial year, Capital Expenditure fell by 81 percent on new projects over the previous year. It is clear that there has been a decline in investment. Apart from this, in August 2020, core sector growth has gone negative 8.5 percent. Import of all goods other than Gold and Crude Oil has also decreased continuously.
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23.9% decrease in GDP during April-June 2020
Gross domestic product (GDP) has decreased by 23.9 percent during April-June 2020. All sectors except agriculture and allied sectors showed negative growth. The construction sector has recorded the most decline. There was a decline of 50.3 percent in it. After this, there was a decrease of 47 percent in transport, storage and communication and 39.3 percent in manufacturing. According to the report, the economy is showing improvement, but all these sectors will continue to fall. Due to this, there are few chances of improvement in economy for long.