Global economic recovery is positive for India, says consultancy firm EY
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New Delhi: Consultancy firm EY reports that global economic recovery is positive for India's economy in the current phase of turmoil.
The Economic Pulse report published by the consultancy firm observed a growth in India's exports.
"India's exports have continued to perform well. India's total exports of goods have grown 59 per cent over May 2020 and remained stable compared to April 2020", report said
"Due to Covid's second wave services exports in India took a hit in April, and only a slight increase was accounted in May. However, the Services exports still grew 6 per cent vis-a-vis May 2020." It added.
However, India's domestic market continues to suffer as total imports of non-oil goods has come down by 17 per cent in May over April 2021.
"This indicates sluggish demand in the domestic market." report noted.
In terms of rural economy, the report, cited that in April 2021, fertiliser sales have declined vis-a-vis April 2020.Besides, tractor sales has fallen sharply in April and May 2021.
"These highlight risk of rural economy being impacted as Covid-19 cases spread.MNREGA works data indicates that the migration of labour from cities to rural areas has been fairly limited in the second wave."
However, on the overall scale, it said that both recorded Covid cases and deaths, are declining and that vaccinating the entire population is the best economic strategy.