The country’s economy will register 12 percent growth in the calendar year of 2021. Global ratings agency Moody’s Analytics has estimated this. Moody’s said that the near future prospects of the Indian economy have become more favorable after a 7.1 percent decline last year. Moody’s Analytics said on Friday that the growth rate of gross domestic product (GDP) for the quarter ended December 2020 was 0.4 percent. This performance is far better than expected. This resulted in a 7.5 percent drop in the economy in the previous quarter.
Moody’s said that the demand of the country and abroad has improved after easing the hooks. This has led to increased manufacturing output in recent months. Moody’s said, “We estimate that private consumption and non-resident investment will increase in the next few quarters, which will improve domestic demand in 2021.”
Growth will be seen in GDP
Moody’s estimates that the actual growth rate of GDP in the calendar year of 2021 will be 12 percent. One reason for this is also the lower base effect of the previous year. Moody’s said that monetary and fiscal policies will be favorable for growth. We believe that there will be no additional cut in policy rates this year and it will remain at four percent. We estimate that the annual fiscal deficit will reach around seven percent of GDP from the budget of 2021-22.
Family expenses can be affected
Moody’s said that the main inflation will increase in a controlled manner in 2021. However, inflation in food items or fuel will affect the expenditures of families. With this, Moody’s has said that if the second wave of COVID-19 infection intensifies, it could pose a risk for improvement in 2021.
Growth in December quarter also
Earlier, the GDP growth in the third quarter of the current financial year, the December quarter, was 0.4 per cent. The National Statistics Office (NSO) released the gross domestic product (GDP) growth estimates for the October-December quarter of the current fiscal year. On a year-on-year basis, GDP growth declined from 4.1 per cent to 0.4 per cent in the third quarter. In FY 2020-21, the GVA increased by 1 per cent on a quarterly basis from 7 per cent, while the GVA decreased from 3.4 per cent to 1 per cent year-on-year.
(With language input)
read this also: Big news: Gold will not sell without hallmark after June 1, now only 3 quality jewelry will be sold