Green shoots in the economy? Some early signs of a turnaround

Mumbai: Green shoots of revival appear to have sprung up in key sectors of the economy in the past two months and economists have expressed different opinions about how quickly the economy can rebound from the slowdown.

Passenger air traffic volumes climbed 11.2 per cent in November, the fastest pace in 2019 so far; while Maruti clocked the highest volumes since March this year of 139,133 in November. Overall passenger car sales slipped marginally by 0.84 per cent year-on-year in November, the fastest pace in 2019 so far; while Maruti clocked the highest volumes since March this year of 139,133 in November. Overall passenger car sales slipped marginally by 0.84 per cent year-on-year in November, and experts believe both the sector and its market leader have managed to get past the worst slump in auto industry’s recent history when sales fell by more than 20 per cent in April-September.

Fuel demand rose over 10 per cent in November mainly driven by higher consumption of petrol and diesel. Bitumen consumption indicated increase in construction of roads. Maruti’s domestic sales have grown every month since August while coal production and rail freight have also started improving. On Tuesday, Bank of America-Merrill Lynch upgraded Maruti to a ‘buy’ and raised its target price to Rs 8,650 from Rs 7,540. The brokerage said that the worst of the volume slump appears to be over and predicted 10 per cent volume growth in both FY21 and FY22.

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