According to this report, the fiscal deficit of the government in the current financial year can be between 17.38 lakh crore and 17.68 lakh crore. Foreign exchange reserves can increase to $ 620-630 billion.
The economy will see a boom due to agriculture and industries.
Care Ratings on Indian Economy: CARE Ratings said in its report that in the current financial year (2021-22), the country’s economy will see a growth of 8.8-9 percent. He said that agriculture and industries will have a big contribution in this. In the financial year 2020-21, there was a decline of 7.3 percent in the country’s economy.
The rating agency said that in the financial year 2022, the country’s economy seems to be doing better on every front. The biggest reason for this is that due to Corona, the base of FY 2021 has decreased significantly. According to the report, the economy will see a boom in the current financial year due to agriculture and industries. The growth rate of 8.2 percent can also not be seen in the service sector.
Lack of demand is the biggest problem right now
Due to the second wave of Corona, businesses like hotels, restaurants, tourism, retail, malls, entertainment were badly affected. Care Ratings says that the country’s economy was already suffering from lethargy before the Corona crisis. The trend of reduction in demand was already going on and this crisis got worse in the Corona epidemic. The government and the Reserve Bank have made all efforts to overcome the shortfall in demand, but so far the expected improvement has not come.
Fiscal deficit may remain at 7.9 percent
According to this report, the fiscal deficit of the government in the current financial year can be between 17.38 lakh crore and 17.68 lakh crore. Based on the nominal GDP of 222.9 lakh crore, the fiscal deficit can be between 7.8-7.9 percent. Apart from this, the NPA of banks is estimated to increase to 10-10.50 percent by March 2022.
Forex reserves could be $630 billion
The trade deficit in the current financial year is likely to be between 0.50-1.0 per cent of GDP. Foreign Portfolio Investment (FPI) in the current financial year is expected to be lower than last year. This year it can remain between $ 18-22 billion. The country’s foreign exchange reserve can increase to $ 620-630 billion.
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