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Signs of Economic Recovery: CII

  • 29 Jul 2020
  • 3 min read

Why in News

Recently, the Confederation of Indian Industries (CII) has said that there are early signs of a V-shaped recovery in the economy in the immediate aftermath of the lockdown.

Key Points

  • Economic Recovery:
    • Economic recovery is being driven mostly by agriculture and rural lending.
    • The Fast-Moving Consumer Goods (FMCG), pharma and construction have also contributed to the positive trends of economic recovery.
      • FMCG is likely to grow at 15-20%, on account of an increase in in-house consumption of food and greater demand for sanitation and hygiene products.
      • The construction sector, which has a large employment multiplier impact on the economy is also recovering back, with most construction sites resuming operations.
  • Reasons:
    • The positive recovery has been predicted based on the increase in Goods and Services Tax (GST) collections, railway freight traffic, petrol consumption, peak power demand and electronic toll collections.
    • There are also expectations of a bumper harvest in the wake of a normal monsoon.
  • Suggestions:
    • In order to nurture the nascent signs of economic recovery, CII has argued to mitigate the uncertainties that are currently prevailing due to mini lockdowns imposed due to Covid-19 pandemic.
      • It has argued to limit the containment zones to micro areas to ensure that business activities are allowed to function seamlessly.
    • CII has recommended a dashboard approach, where the progression of infections would trigger predictable responses in a way that would reduce uncertainty and boost consumer and industry confidence.

Confederation of Indian Industries

  • CII is a non-government, not-for-profit, industry-led and industry-managed organization.
  • It works to create and sustain an environment conducive to the development of India, partnering industry, Government and civil society, through advisory and consultative processes.
  • Founded in 1895, it is headquartered in New delhi.

Source: TH

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