While US, Europe rebound, India yet to find firm ground as economy shrinks

While US, Europe rebound, India yet to find firm ground as economy shrinks


China has come roaring back from the devastation of Covid-19, and the United States, Europe and Japan are finding their feet. But the hundreds of millions of laborers and shopkeepers who keep India’s economy running still can’t find relief.


India’s economy shrank 7.5 percent in the three months that ended in September compared with a year earlier, government figures showed on Friday. The data reflects the deepening of India’s severest recession since at least 1996, when the country first began publishing its gross domestic product numbers.



The new figures firmly ensconced India’s position among the world’s worst-performing major economies, despite expansive government spending designed to rescue the thousands of small businesses severely battered by its long, hastily imposed lockdown.


Nikhil Das, a 62-year-old manufacturer of silk ties and scarves in New Delhi, says his business is teetering on the

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From small businesses to farmers, here’s how middle India is driving demand

From small businesses to farmers, here’s how middle India is driving demand


Manish Mehra, owner of Washex Hospitality, an industrial laundry service, recently flew from Delhi to Jodhpur, a city in north-western India, to win a contract to service a large, government-run hospital – a move essential to kickstarting his business.


“For a new relationship it is essential to know each other before you can establish the trust and confidence to work online and that need is higher in case of government departments,” said Mehra, who had to stay for a week in a Jodhpur hotel.



Increased demand for air travel and hotel stays by small business owners like Mehra, accompanied by a rise in rural incomes and spending after two good monsoons, is helping the pandemic-hit slowly recover.


Government data released on Friday showed the economy shrank 7.5% in the July-September quarter, performing better than analysts’ expectation of

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Speed of economic recovery a ‘pleasant surprise’: Niti Aayog’s Rajiv Kumar

Speed of economic recovery a ‘pleasant surprise’: Niti Aayog’s Rajiv Kumar


Vice Chairman on Friday termed the speed of India’s economic recovery as a “pleasant surprise” and said manufacturing shows a positive growth that confirms a rebound.


India’s economy recovered faster than expected in the September quarter as a pick-up in manufacturing helped GDP clock a lower contraction of 7.5 per cent and held out hopes for further improvement on better consumer demand.



“Speed of #economic recovery springs a pleasant surprise. #Manufacturing shows a positive growth which is the confirmation of a rebound of demand led recovery,” Kumar said in a tweet.


The gross domestic product (GDP) had contracted by a record 23.9 per cent in the first quarter of the 2020-21 fiscal (April 2020 to March 2021) as the coronavirus lockdown pummelled economic activity.


With the gradual opening up from June, the economy

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Concern being replaced by optimism as economy shows signs of recovery

Concern being replaced by optimism as economy shows signs of recovery


Concern about the depth of India’s recession is slowly being replaced by optimism that a recovery is taking hold.


A slew of indicators from car sales to services sector activity notched higher last month, while alternative data signal robust demand in an economy that’s primarily driven by domestic consumption.



Data due Friday will likely show declined 8.2% in the three months through September, according to economists surveyed by Bloomberg. While that pushes Asia’s third-largest economy into its first technical recession in records going back to 1996, it’s a sharp recovery from the record 24% contraction the previous quarter.


The improvements are expected to continue, with some analysts seeing the country returning to growth as soon as this quarter. The recovery from the lockdown has been stronger than expected, Reserve Bank of India Governor Shaktikanta Das said

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Share of rural mkt grows in passenger car sales with more first time buyers

Share of rural mkt grows in passenger car sales with more first time buyers


Leading car makers saw demand rise by nearly 10-15 per cent during the festive season. While rural sales continued to grow faster and their share in overall sales increased, the number of first time buyers in rural markets was higher compared to urban markets, according to industry representatives.


This year’s festive season started from October 16 with Chingam/Onam and ended with Bhai Dooj in the middle of November.



While, Hyundai Motor India Ltd (HMIL) did not respond to queries, Shashank Srivastava, executive director, marketing and sales at Maruti Suzuki India Limited (MSIL), said that during the festive season his company delivered 233,000 cars, an increase of around 10-11 per cent compared to last year and the highest in the last 4-5 years. He noted, however, that there was pent up demand. He said that post Diwali, booking and enquiry levels are

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Two-wheeler exports to decline by 18-21% in FY21, says India Ratings

Two-wheeler exports to decline by 18-21% in FY21, says India Ratings


Ratings agency India Ratings and Research (Ind-Ra) said it expects the two-wheeler (2W) exports decline for FY21 to be in line with that of the domestic industry at 18-21 per cent. It added that since only accounted for 16-18 per cent of the total two-wheeler sales for Indian OEMs, this was not likely to be substantial enough to compensate for the domestic volumes during the same period. Two-wheeler export volumes are likely to increase by mid-teens in FY22, the ratings agency said.


The Ind-Ra report said that India’s would see sustained growth in the second half of next fiscal year after witnessing temporary hurdles in the first half this year due to the Covid-19 pandemic and weakened crude oil prices, hurting the economies of key exporting destinations. This coupled with the nationwide lockdown, supply-chain and logistics disruptions impacted export sales significantly.

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