Indian economy is on track to grow 10% in the year that began April 1st
Published On: Monday, May 31, 2021 | By: Team KnowMyStock
The resilience of the Indian economy will be tested by its ability to overcome a devastating outbreak of Covid-19, although no one is yet doubting its potential to pull off the world’s fastest pace of growth among major economies this year. The economy is on track to grow 10% in the year that began April 1, according to the median of 12 estimates compiled by Bloomberg News. That’s after several economists downgraded their forecasts in recent weeks to factor in local curbs on activity, including in India’s political and commercial hubs. Economists say the relaxation of restrictions across states will determine the strength of the rebound, while the willingness of consumers to spend will also be key. Data likely to be released today(31st May 2021) will probably show gross domestic product grew 1% in the three months ended March, making it the second straight quarter of expansion since India exited a rare recession.
The biggest hit from the second wave of Covid infections has been to demand, RBI said earlier this month. The central bank, which will review interest rates later this week, has kept monetary policy loose and injected liquidity into the system to support growth.
“Even as India’s second Covid-19 wave starts to recede, the underlying economic toll now appears larger than we expected,”an expert said. “Furthermore, the slow pace of vaccinations and rolling lockdowns are also likely to weigh on India’s recovery.”If the country is hit by a third wave of infections, as some experts warn, the economic costs could rise further, dragging down growth to 7.7%, he said.
Tags: Indian economy COVID-19 lockdown GDP
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