Expected to grow 1% year-on-year

Drive a Covid-19 vaccination at a government health center during a Covid-19 emergency in Kolkata, India, on May 3, 2021.

Indranil Aditya | Na Photo | Getty Images

India’s economy is expected to improve in the three months ending in March, but analysts have lowered its growth forecast for the quarter ending in June.

This happens as India continues to fight the second wave of the devastating coronavirus epidemic.

Gross domestic product for the January-March period (India’s fourth quarter of accounting) is scheduled around noon (GMT) on Monday. The Indian fiscal year begins in April and ends in March of the following year.

According to Reuters, the median growth rate for the March quarter was 1%, up from 0.4% in the previous quarter, according to economists surveyed. However, economists are not very optimistic about the current quarter ending in June.

In order to stabilize the epidemic, it is necessary to reach the important immunization level, immunization level in India. This is important for economic growth.

The median growth forecast for the three months from April to June was 21.6%, down from the previous forecast of 23%, Reuters reported. The median forecast for fiscal year 2022 is down 9.8% from the previous forecast of 10.4% growth.

India is the second most infected country in the world after the United States. More than 28 million cases and more than 329,000 deaths have been reported.

Expected growth is “cold comfort” for India

Evaluation eyes

Based on trends seen last year, Newman added that the Indian economy tends to recover rapidly as virus cases peak, he said, and the situation will improve by the end of the September quarter. He said he was expecting that.

Aggressive vaccination efforts pose risks associated with a potential downgrade of India’s sovereign rating, which is a concern among investors, according to Deutsche Bank’s Chief Economist for India and South Asia, Kausik Das. Can be mitigated.

Rating agency They said No imminent change seen India’s sovereign rating is not yet available.They have the economic impact of the second wave June quarterly only And we predict it will not be as serious as last year, when India implemented a nationwide blockade for several months.

Expected to grow 1% year-on-year

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