Eight core sectors record resounding recovery

According to stats released by the department for promotion of industry and internal trade (DPIIT), the eight core sectors — spanning coals, crude oil, natural gas, petroleum & refinery products, fertilizers, steel, cement and electricity — recorded a growth of 9.4% in July compared to a contraction of 7.6% in the same month last year and marginally higher than the previous month's 9.3% expansion. This is the fifth consecutive month that the sector has maintained its pace of growth. Madan Sabnavis, chief economist at Care Ratings, informed that based on the 9.4% growth rate, IIP growth in July is expected to be between 12-14%.

Separate stats showed the fiscal deficit at the end of July was at ₹3.2 lakh crore or 21.3% of the full year target. In the corresponding period of last year it was at 103.1% of the full year target. Similarly, revenue receipts were up 34.2% at the end of July compared to 12.4% in the corresponding period of last year. Revenues have been robust this year on the back of the strong recovery displayed by some sectors of the economy. Aditi Nayar, principal economist at ICRA said, "With a healthy rise in receipts amidst a discouraging decline in total spending driven by the non-interest non-subsidy component of revenue expenditure, the government's fiscal deficit printed at a modest ₹3.2 trillion (₹3.2 lakh crore) in April-July 2021, relative to the year-ago level of ₹8.2 trillion recorded amidst the first wave of Covid-19, as well as the pre-Covid level of ₹5.5 trillion."