India is expected to post strong economic growth in the coming quarters, even as inflation, led by food prices, is likely to remain elevated, S&P Global Ratings said on Wednesday.
Hitting out at the Centre, Rahul Gandhi said, "Farmers, labourers, small and medium businesses, MSMEs, salaried class, government employees and honest industrialists are being demonetised. Who is being monetised? 4-5 friends of Narendra Modi ji - economic transfer is being done."
Taking on the Modi government, Congress leader Rahul Gandhi on Wednesday once again hit out at the Centre over inflation saying increase in GDP means hike in gas, diesel, petrol prices. addressing a presser, Rahul Gandhi said, "In the last 7 years, we have seen a new economic paradigm. Demonetisation on one side, and monetisation on the other side."
The gross domestic product (GDP) had contracted by 24.4 per cent in the corresponding April-June quarter of 2020-21, according to data released by the National Statistical Office (NSO).
State Bank of India has developed the 'Nowcasting Model' with 41 high-frequency indicators associated with industrial activity, service activity, and the global economy.
The forecast for 2021-22 is lower than the 12.5 per cent growth in GDP that the international organization predicted in April before the second wave hit India.
Reserve Bank of India (RBI) Governor Shaktikanta Das said that the second wave of pandemic has taken grievous toll on India.
The Reserve Bank on Friday lowered the country's growth projection for the current financial year to 9.5 percent from 10.5 percent.
The former finance minister attacked the Central government over the GDP numbers.
During a video-conferencing interaction, Congress Leader P Chidambaram highlighted economical situation of the country amid COVID crisis and said that the 2020-21 is the "darkest year" of the economy in four decades.
"We expect a decline in economic activity in the April-June quarter, followed by a rebound, resulting in real, inflation-adjusted GDP growth of 9.3 per cent in the fiscal year ending March 2022 and 7. 9 per cent in fiscal 2022-23," Moody’s Investors Service said
India's economy grew by 1.6 per cent in the fourth quarter of 2020-21, restricting the full-year contraction to 7.3 per cent, official data showed on Monday.
S&P, which currently has a 'BBB-' rating on India with a stable outlook, said the depth of the Indian economy's deceleration will determine the hit on its sovereign credit profile.
Last week another global rating agency Fitch had projected India's economic growth in current fiscal at 12.8 per cent, while Moody's Investors Service had earlier this month said that the second wave of COVID infections presents a risk to India's growth forecast, but a double digit GDP growth is likely in 2021.
The Indian economy is projected to grow at 11 per cent in the current financial year amid the "strong" vaccine drive, said ADB on Wednesday, while cautioning that the recent surge in COVID cases may put the country's economic recovery at "risk".
GDP is still likely to grow in the double digits in 2021 given the low level of activity in 2020 according to Moody's Investors Service.
The IMF on Tuesday projected an impressive 12.5 per cent growth rate for India in 2021, stronger than that of China, the only major economy to have a positive growth rate last year during the COVID-19 pandemic.
The Washington-based global lender, in its latest South Asia Economic Focus report released ahead of the annual Spring meeting of the World Bank and the International Monetary Fund (IMF), said that the economy was already slowing when the COVID-19 pandemic unfolded.
China’s economy, which was the first to be hit by the coronavirus pandemic and early to recover from its impact, grew 2.3 per cent in 2020, registering the lowest annual growth rate in 45 years.
The benchmark BSE Sensex surged nearly 750 points and NSE Nifty rallied over 232 points on Monday as investors cheered the domestic economy returning to positive territory after two-quarters of contraction.
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