As the economy recovers from the impact of the second wave of the pandemic, the Finance Ministry has said that global investors are optimistic and upbeat about the Indian economy and are coming in with more investments.
The Monthly Economic Review for August 2021 released by the Department of Economic Affairs (DEA) on Thursday said that sanguine economic prospects continue to be catalysed by effervescent external sector indicators.
“Buoyed by improvement in economic indicators post ebbing of the second wave, global investors remain upbeat about India’s growth story contributing further to FDI and FPI inflows,” it said.
The ministry noted that India’s foreign exchange reserves surged to a record high of $633.56 billion as on August 27, 2021.
It said that provisional GDP estimates, now available for April-June quarter (Q1) of FY 2021-22, reaffirm India’s resilient V-shaped recovery despite a more brutal second wave.
“Having posted an almost 180 degree turnaround from a sharp contraction in Q1 of FY 2020-21, to recover more than 90 per cent of the pre-pandemic Q1 output of 2019-20, the V-shaped economic recovery remains intact.”
The momentum of India’s economic recovery witnessed since the second half of FY 2020-21 did get disrupted by the second wave.