Macroeconomic Report by the Indian Finance Ministry.
                     Macroeconomic Report by the Indian 
Finance Ministry
Introduction
• For the month December and January recently government has published 
macroeconomic report.
• In the coming slides, the top 10 learnings from the report will be discussed.
Source: Scroll.in
Growth Rate
• The IMF predicted a contraction of 4.5 percent (-4.5 percent growth) for India in 2020, 
a downward change of 6.4 percentage points compared to the April 2020 estimate, the 
Economics Department said in its June macroeconomic report.
Source: New Indian Express
With Reference to COVID-19
• The economic growth of pre-COVID days, if and when restored by opening the 
economy more fully, will lean heavily on the reforms undertaken today to improve its 
potential tomorrow
Source: ET
Policy Measures
• The government and the RBI have taken prompt policy measures, both in the short 
and long term, in a calibrated way to revive an economy that is already slowing before 
the coronavirus outbreak starts. 
• The RBI and the government's proper preparation of the economic downturn in March 
has made the policy climate conducive.
Source: Freepik
Social Reforms
• The Center's structural reforms and social welfare initiatives would help create green 
shoots in the economy, the report said, adding that its stimulus package "Atmanirbhar 
Bharat" has accelerated reforms at a time when the pandemic has led to government 
fiscal constraints and hindered government expenditure.
Source: Wikipedia
Revenue Collection
• The disruption in economic activity due to COVID-19 in April and May has contributed 
to a shortfall in government revenue collection.
Source: SAG infotech blog
Crisis of Pandemic
• According to the report, the world is witnessing an unprecedented crisis since January 2020, with 
the "highly contagious" COVID-19 rapidly hitting major world economies.
• Industrial Production Index (IIP) grew by 1.8 percent in November 2019, compared with an 
increase of 0.2 percent in November 2018. 
• In December 2019, the value of exports and imports of merchandise (in terms of US$) declined by 
1.8 per cent and 8.8 per cent respectively.
Source: ET Auto
Effect of Pandemic
• According to the study on domestic financial markets, the effect of COVID-19 on the 
economy is rapidly changing, which drives regular market volatility. 
• With enormous uncertainty about the pandemic stemming from the unknown and the 
inability to plan or know what's next, this uncertainty is expected to adversely affect the 
business climate and make their investment plans firmly delayed.
Source: TOI
Trade Crisis
• It is anticipated that COVID-19 disease and lockdown will leave an adverse impact on 
trade. However, on the back of relatively sharper declines in imports and lower oil 
prices the overall effect on net exports can be positive. 
• The country's trade deficit-or export shortfall as compared to imports-narrowed in May 
2020 to $3.1 billion-the lowest since February 2009.
Source: The Week
Declined Growth due to COVID19
• India recently overtook Russia as the third worst-affected country in the world with 
nearly 7,00,000 cases of COVID-19, behind only the US and Brazil, as the outbreak 
shows no sign of slowing down.
Source: Pixabay
Low GDP
• India's current-account deficit as a percentage of GDP was 0.9 percent in Q2 2019-20, 
compared to 2.9 percent in the previous year's corresponding period. 
• The total production of kharif food grains is estimated at 140.6 million tonnes, based on 
the first advance estimates for 2019-20.
Source: ET