Indian economy might grow in current financial year.
The National Council of Applied Economic Research(NCEAR)
The Indian economy is expected to increase by 8.4-10.1 per cent this fiscal year, up from 7.3 per cent in the previous year, according to the economic think tank, NCAER.
The National Council of Applied Economic Research (NCAER) has called for significant budgetary support to boost economic growth in its quarterly economic assessment.
“We expect GDP to expand 11.5 per cent in Q1 (first quarter) and 8.4 to 10.1 per cent for the entire year 2021–22,” says the report.
“However, since 2021-22:Q1 follows the very sharp decrease in 2020-21:Q1, these high growth rates are also a reflection of a substantial base effect. “At constant prices, the GDP in 2021-22 would be around Rs 146 trillion (Rs 146 lakh crore) as it was in 2019-20,” the NCAER said in a release.
According to NCAER’s projections, the economy shrank by 7.3 per cent between 2020 and 21. The second COVID-19 wave, which was four times more ferocious than the first in terms of the number of cases and deaths, has further interrupted the growth process, which had already been seriously harmed by the first wave, according to the research. It said that high-frequency indicators reveal a severe drop in economic activity in April and May 2021, the top of the second COVID-19 wave, while there are some signs of recovery in June as unlocking continues.
After two years of stagnation, the economic process now requires a significant positive push, according to NCAER, who said that, thankfully, export growth is expected to stay buoyant as the global economy recovers.