The fall in economic growth has hit bottom: senior government official
New Delhi, November 8 () India's economic growth shows signs of revival with a rebound in loans and recovery in the automotive sector, said a senior government official who insisted that the decline in GDP growth has touched background.
India's economic growth in April-June reached a minimum of six years of 5% and there were indications that the expansion may not have recovered substantially in the subsequent quarter. But with the start of the festival season in October, there are signs of a revival.
Between October 1 and 9 alone, around Rs 81,000 million have been extended as loans, the official said and added that the credit boost has only recovered in the following weeks.
In addition, buying at festivals has revived car sales with the demand for cars that show signs of return.
The official rejected the reasons cited by Moody's Investors Service to revise its outlook so that India's rating is negative from stable, and said there was no need for a review when economic activity shows signs of rebound.
Moody's has cited the continued deceleration of its action, the first step towards a downgrade.
The official said the government has been sensitive to the concerns of all sectors and has been taking proactive measures to address them.
The attempt has been to revive the investment and address liquidity problems by demanding the mandatory release of funds to MSMEs with a stipulated deadline, the official said.
On India's decision not to join the 16-nation free trade bloc, the senior official said that New Delhi already has free trade agreements with the main ASEAN nations and some other leading trade partners of RCEP. The Modi government, the official said, would not compromise the national interest and would not join RCEP until it is titled against him. KR ANZ MKJ