he economy is nearing a rebound as banks are seeing an uptick in disbursement in retail loans, Finance Minister Nirmala Sitharaman said at a media event on Wednesday.
The economy is nearing a rebound as banks are seeing an uptick in disbursement in retail loans, Finance Minister Nirmala Sitharaman said at a media event on Wednesday. The signs of positivity in the PMI index and MSMEs also give clear signs of recovery in various sectors, Nirmala Sitharaman also said. It comes a day after Nirmala Sitharaman told Parliament that several significant macroeconomic indicators emerged in the recent past point towards green shoots in the economy. According to RBI’s February 2020 bulletin, gross bank credit reached over Rs 88 lakh crore till December 20, 2020.
The gross credit saw a growth of 1.7 per cent in the financial year so far. The growth was recorded at 7 per cent on-year. The highest growth was seen in the personal loan sector at 15.9 per cent on-year. Meanwhile, pointing towards steady recovery in the economy, the RBI bulletin said even as the private investment is expected to accelerate going ahead, its sustainability needs to be keenly monitored. The planned capex from all sources based on the pipeline projects sanctioned in all preceding years points to a marked improvement in FY20, the RBI also said. In the data analysis on investment intentions of the private corporate sector in India during FY19 and FY20, the RBI said that the total cost of projects sanctioned surged to Rs 2,53,705 crore in FY19 compared to Rs 2,07,673 crore in FY18.
The Indian economy is undergoing a slowdown for some time now on account of both global and domestic factors. Nirmala Sitharaman announced a slew of measures in budget 2020 to boost the slowing economy. According to the first advance estimates by the Modi government, the economy is expected to grow at a rate of 5 per cent.