New Delhi, Nov 15 (UNI) Citing uptrend in some of the key high-frequency data, the government on Monday said that economic recovery has been robust and growth outlook is bright.

Finance ministry in a statement said that Index of Industrial Production (IIP) for the month of September, 2021 shows a sustained increase in industrial production.

"The IIP, in FY 2021-22, has grown from an average of 121.3 in Q1 to 130.2 in Q2. The IIP in Q2 would have been still higher but for heavy monsoons disrupting mining activity, especially coal and consequently electricity generation, that repressed the growth of overall production index," it noted.

It further said that sharp increase in capital goods index from an average of 74.0 in Q1 of FY 2021-22 to 91.7 in Q2 underscores a significant recovery in investment.

"There are clear signs of investment being induced by rise in consumption in FY 2021-22 as consumer durables index increases from 91.7 in Q1 to 121.2 in Q2 while consumer non-durables index also moves up from 139.1 to 146.9 across the two quarters," the ministry said.

Highlighting the decline in Consumer Food Price Inflation (CFPI) from 4.0 per cent in Q1 of FY 2021-22 to 2.6 per cent in Q2 and further to 0.8 per cent in October, it said that the data clearly shows supply side disruptions to food distribution have considerably eased.

"GST collections have soared in FY 2021-22 to reach its second highest monthly collections ever of Rs.1.3 lakh crore in October, 2021, reflecting robustness of growth revival. Tractor sales hit a record high of 1,15,615 units in October 2021, 25% higher than September, 2021 volumes, indicative of sustained growth in the agricultural sector," said the ministry.

It stated that exports are visibly emerging as the engine of growth for India’s economy having crossed $30 billion for the seventh successive month in October of FY 2021-22.

On a cumulative basis, India’s merchandise exports in April-October stood at $232.58 billion, up 54.5% over the same period in 2019.

"Outstanding credit of the scheduled commercial banks has been steadily rising in FY 2021-22. Retail credit in particular has been noticeably increasing suggestive of strengthening consumption in the economy," the ministry said.

According to CIBIL, inquiry volumes have increased by 54% between February and October of 2021 as economic activity has gained momentum.

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