Picture used for illustrative purpose. File

Gulf Today Report

Small business owners take the lead in channelling growth for economic recovery in pandemic-hit India.

India is seeing a surge in demand for air travel, hospitality and vechile as small business owners face an increase in rural income.

According to government data released on Friday, the economy slumped by 7.5% between July and September.

Although, it performed above expectations. Analysts had an 8.8% shrink expectation when the lockdown was lifted.

The farm sector grew by 3.4% and the manufacturers had 0.6% growth during the September quarter. The growth has encouraged investors and raised hope for economic recovery. 

READ MORE 

OPEC likely to extend output cut at the upcoming meeting

Amazon to give $500 million in Christmas bonuses to frontline staff

Investment in edutech industry touches record $18.7 billion mark

In the vehicle production sector, farmers are demanding for more tractors due to bumper crop. Other residents are purchasing more personal vehicles due to lack of public transport.

Goods and services, tax collections and energy consumption has also grown.

Yuvika Singhal, an economist at QuantEco Research said, India’s economy has started recovering, it is led by the manufacturing sector which has moved from near annihilation in the July quarter to rebound mode.

"Until there is a stronger recovery in high contact service sectors, which make up 60% of the GDP, agriculture and manufacturing are expected to carry the growth," he said, adding that India is still growing on a lower GDP base and it will take more than a year to recover lost output.