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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... >>

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