RECVERY

Interesting things are going on around us.

Normally after Diwali, industrial production starts contracting for a few months. Again starts after the budget or financial year closing.

But this year new normal is emerging  even after Diwali there is no slow down in industrial activity

Experts are saying that recovery is going to be V-shaped.

If we go through the recent news of various periodical also the annual summit of different Industry body we find an interesting fact that the recovery is faster than expected.

Few are giving credit to the package which was given to the MSME sector. Spending on infrastructure and so on.

It is also true that the total infrastructure pipeline created and under execution is very robust.

If we go through the PMI or purchase manager index from JULY2020 to NOV2020 it is over and above 50 which denotes expansion in business activity.

Bank credit and NPA creation data is  showing an increase in credit  to industry less NPA forming

This means there is a huge demand for credit and default is going down.

It is true that a few sectors are not working up to their capacity and are still in the red.

But there is a strong demand for goods and services in ruler and urban areas even after Diwali

This year's budget expectation is that it will spur demand for all goods and services.

There may be an increase in spending on infrastructure and social infrastructure by Govt.

Asset creation by the Private sector is also increasing as they are also investing to create additional capacity.

Micro & Macro indicators are comfortable given the situation in which we are right now.

Lastly, there will vaccine sooner or later which is going to change the fear psychosis.

& three farm laws that were notified by Govt recently are going to be a game-changer in the coming years.

The only thing which is missing is our own belief