Finance Ministry’s Monthly Economic Review

The Ministry of Finance recently released its “Monthly Economic Review for September 2021”. According to the report, Indian economy is on path of swift recovery from the impact of Covid-19 pandemic.

Key Findings

  • As per economic review report, sustained & robust growth in agriculture sector, rebound in manufacturing & industry sector, resumption of services activity & revenues indicates that the Indian economy is progressing well.
  • External sector continues to offer bright prospects to growth revival in India. The merchandise exports of India have crossed USD 30-billion mark for the sixth consecutive month in fiscal year 2021-2022.
  • External debt-to-GDP ratio has declined to 20.2 per cent in June 2021, from 21.1 per cent in March 2021.
  • Rate of growth of bank credit was 6.7 per cent during September 2021 as compared to 5.3 per cent in same period of year 2020.
  • Recovery is witnessed through e-way bills, sustained improvement in power consumption, rail freight activity, robust GST collections and increase in air freight & passenger traffic.
  • Highway toll collections are also on higher side, posting a 21-month high.
  • Digital transactions have also increased.


The report concludes that strategic reforms & rapid vaccination drive has pulled India on the path of recovery. This became possible because vaccination has enabled Indian economy to “navigate the ravaging waves” of covid-19 pandemic.

Debt-to-GDP Ratio

The debt-to-GDP ratio is the ratio between government debt and its gross domestic product (GDP). Low debt-to-GDP ratio indicates that, an economy is producing and selling goods & services sufficiently to pay back debts without leading to further debt.




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