GDP భారీ పతనం ఖాయం, ఆర్థిక ప్యాకేజ్ ఆపలేదు||GDP to be negative, package fails to boost||
Notwithstanding the economic packages announced by the Centre so far, India is staring at a recession in the wake of the Covid-19 pandemic. Going by the dire prediction of GDP contraction made by rating agency Crisil and State Bank of India’s Economic Research Department for FY21, India’s economy is set to fall off a cliff.
While Crisil has forecast India’s GDP growth to contract 5 per cent in fiscal 2021, SBI’s Economic Research Department (ERD) has painted a grimmer picture, pegging the real GDP growth at minus 6.8 per cent.
The GDP contraction forecast comes against the backdrop of the Reserve Bank of India Governor Shaktikanta Das stating late last week that “the global economy is inexorably headed into recession.”
Crisil warned that the first quarter will suffer a staggering 25 per cent contraction. SBI’s ERD believes that Q1 (April-June) GDP FY21 loss will be humongous and could even exceed 40 per cent.
Moody’s Investors Service, in a recent report, observed that even before the coronavirus outbreak, the economy was growing at its slowest pace in six years. The economic impetus from direct fiscal spending is also limited, it added.
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GDP భారీ పతనం ఖాయం, ఆర్థిక ప్యాకేజ్ ఆపలేదు||GDP to be negative, package fails to boost|| Notwithstanding the economic packages announced by the Centre so far, India is staring at a recession in the wake of the Covid-19 pandemic. Going by the dire prediction of GDP contraction made by rating agency Crisil and State Bank of India’s Economic Research Department for FY21, India’s economy is set to fall off a cliff. While Crisil has forecast India’s GDP growth to contract 5 per cent in fiscal 2021, SBI’s Economic Research Department (ERD) has painted a grimmer picture, pegging the real GDP growth at minus 6.8 per cent. The GDP contraction forecast comes against the backdrop of the Reserve Bank of India Governor Shaktikanta Das stating late last week that “the global economy is inexorably headed into recession.” Crisil warned that the first quarter will suffer a staggering 25 per cent contraction. SBI’s ERD believes that Q1 (April-June) GDP FY21 loss will be humongous and could even exceed 40 per cent. Moody’s Investors Service, in a recent report, observed that even before the coronavirus outbreak, the economy was growing at its slowest pace in six years. The economic impetus from direct fiscal spending is also limited, it added.