Page 5 - The Indian EYE 112720
P. 5

BIG STORY                                                             NOVEMBER 27, 2020  |        The Indian Eye                          5





        ...Continued from last page. >>                                                                               encouraging. Food Inflation is
                                                                                                                      expected to soften in Q3,” he

        ter if July and August showed                                                                                 said.
                                                                                                                          The ministry statement said
        a little bit of traction. The SBI                                                                             during the quarter trade, hotels,
        business activity index showed                                                                                transport  and  communication
        continuous  improvement  and                                                                                  saw a dip of -15.6 per cent while
        expected  Q3  numbers to  be
        even better. “However, the ex-                                                                                public administration, defense
        tent of recovery in subsequent                                                                                and other services by -12.2 per
        quarters could only be gauged                                                                                 cent. The financial, real estate
                                                                                                                      and professional services sector
        after the actual Q2 numbers                                                                                   contracted by 8.1 per cent and
        were published,” the report                                                                                   construction by 8.6 per cent.
        stated.                                                                                                           It  has  been  reported  that

                                                                                                                      India’s e-commerce festive sale
        the  ecowrap report said                                                                                      season from October 15-No-

        there was no doubt that                                                                                       vember 15 this year delivered
                                                                                                                      $8.3 billion (about Rs 58,000
        the country’s economy                                                                                         crore) worth of gross sales for

        had suffered and the scar-                                                                                    brands and sellers, up 65 per
                                                                                                                      cent from $5 billion (Rs 35,000
        ring still remained.  the                                                                                     crore) last year.
                                                                                                                          This was also higher than
        micro, small and medium                                                                                       the pre-festive forecast of $7
        enterprises (msme) sec-                                                                                       billion, RedSeer said in a report

        tor borne the brunt of the                                                                                    titled ‘The Festival of Firsts’.

        coVid-19 pandemic and                                                                                         about $3.2 billion (Rs

        the export Promotion cap-                                                                                     22,000 crore) worth of
        ital Goods (ecLGs) scheme                                                                                     gross sales was registered

        was a shot in the arm.                                                                                        in  september this year,


                                                                                                                      which zoomed to $8.3 bil-
            The SBI Ecowrap reiterat-
        ed that despite the reduction in                    Finance minister Nirmala sitharman (ANi)                  lion in the festive period,
        losses, one should remain cau-                                                                                the report said.
        tious in the present scenario.  sumer  confidence  is  restored.  per cent is a rebound from the
        “Although the GST numbers  The best estimate of full recov- earlier quarter, when the econ-
        provide cheer as in October  ery in consumer confidence can  omy had contracted by 23.9                           Of the $8.3 billion, $4.2
        2020, it showed 10 per cent  be placed in Q3,” the report  per cent in the April to June                      billion (Rs 29,000  crore)  was
                                                                                                                      logged  in  the  first  event,  $1.2
        y-o-y growth and is expected  concluded.                                 quarter (Q1 FY21), the current       billion (Rs 8,700 crore) in the
        to be healthy, the true picture         With the contraction of the  contraction has caused the In-           second event and $1.4 billion
        will emerge when GDP data  Indian GDP by 7.5 per cent in  dian economy to hit technical                       (Rs 9,700 crore) and $1.5 bil-
        comes,” the report added.            July to September quarter (Q2  recession for the first time.
            It further said future prog- FY21), Chief Economic Advi-                 “Indian     economy       had    lion (Rs 10,300 crore) in other
        nosis depended on two things --  sor (CEA) KV Subramanian                picked up momentum by Feb-           events by e-commerce compa-
                                                                                                                      nies, including Amazon and
        the shape of the recovery from  on Friday said GDP estimates  ruary 2020, only to be halted by                Walmart-owned Flipkart.
        COVID-19 infections and how  are more encouraging than  COVID-19 outbreak. The Q1-                                Festive season sees players
        fast the vaccine was rolled out.     what was anticipated though he  GDP contraction was primarily            holding multiple sale events,
            “The current trends of  urged for caution in the coming  due to the stringent lockdown,”
        COVID-19 infection show the  months.                                     CEA said.                            timed around Dussehra and
        cases in India peaked in Sep-           “The GDP estimates are               Subramaniam mentioned            Diwali.
                                                                                                                          Meanwhile, Moody’s on
        tember. With Unlock 5.0 and  more encouraging than what  that a V-shaped  recovery in                         Thursday raised India’s gross
        festival season till December  was anticipated by most com- growth could be spotted across                    domestic product (GDP) fore-
        end, the chances of possible  mentators. Uncertainty in the  sectors with “capital and infra-                 cast for 2020 to 10.6 per cent
        second wave will increase.  economic outlook is due to  structure sectors especially en-                      contraction, from an 11.5 per
        With domestic vaccine entering  the COVID-19 pandemic and  couraging”.
        Phase III and one more phase  therefore I would urge cau-                    “There is a V-shaped growth      cent contraction projected ear-
        to go, COVID-19 recovery will  tion  especially  given  winter  pattern in all major sectors to-              lier. It also revised calendar
        be contingent on how fast the  months,” Subramanian said.  day. Consumer durables, capi-                      year 2021’s GDP upwards to
        vaccine is rolled out and con- Though the contraction of 7.5  tal and infrastructure look very                    Continued at next page... >>


                                                               www.TheIndianEYE .us
   1   2   3   4   5   6   7   8   9   10