Economic think tank NCAER believes that the growth rate for the Indian economy can be 11.5 percent in the first quarter of the current financial year. It has been estimated at 8.4-10.1 per cent for the full financial year.
There was a decline of 7.3 percent in the financial year 2020-21.
NCAER on Indian Economy: The lockdown imposed due to the new wave of Corona has definitely affected the pace of economic recovery. This is the reason why many rating agencies have reduced the growth rate estimates for India’s economy. Economic think tank NCAER expects the Indian economy to achieve a growth of 8.4-10.1 per cent in the current financial year. The economy contracted by 7.3 per cent in the last financial year.
The National Council of Applied Economic Research (NCAER), while releasing its quarterly review of the economy, emphasized on strong financial support to boost economic growth. NCAER said in a statement, ‘We estimate that the GDP will grow by 11.5 percent in the first quarter of the financial year 2021-22, while it will increase by 8.4-10.1 percent for the full financial year.’ “However, the base effect has a major role to play in high growth,” it said. The first quarter of the year 2021-22 will be achieved on top of the big fall in the first quarter of 2020-21 last year. At the end of 2021-22, GDP will be equal to Rs 1,46,000 billion (146 lakh crore) at constant prices, same as in 2019-20.
The second wave is four times more dangerous than the first wave
According to the estimates of NCAER, there was a contraction of 7.3 percent in the economic growth in 2020-21. The report said that compared to the first wave of COVID-19, the second wave was four times larger in terms of number of infection cases and deaths. This has caused further damage to the economy badly hit even before the first wave.
Local lockdown will also have an effect on the economy
Here SBI Chairman Dinesh Khara said that in the new wave of Corona, the lockdown was imposed on a local basis, yet it will have an impact on the development of the country. Addressing the AGM meeting, he said that the bank has digitized most of its services. All the facilities of SBI are available on YONO mobile app. Customers are also getting a pre-approved personal loan on YONO.
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