The $40 billion allocated for providing water connections across the country will not only better health and hygiene standards and improve the ease of living for citizens, but it will also create huge demand for products such as steel, cement, sanitaryware and labour and help generate millions of jobs and provide a further fillip to India’s fast recovering growth engine.
Unbridled foreign currency inflows into Indian stock markets can lead to an appreciation of, and volatility in, the Indian currency. Thus, the central bank’s role in ensuring that the rupee trades in a narrow band will be very important in the coming quarters.
Fitch Ratings expects India's economy to contract by a record 9.4 per cent in the current fiscal year ending March 2021 (FY21) amid the shock from coronavirus pandemic but this represents a 1.1 percentage point improvement from its our previous forecast, reflecting a stronger-than-anticipated rebound in 3Q 2020.
Diverse economy, sweeping reforms and credible policy frameworks set the stage for post-pandemic priorities.
The Self-Reliant India mantra has already succeeded in attracting billions of dollars of FDI, with much more in the pipeline. This rapid ramp-up in technological and manufacturing capacities is setting the stage for rapid growth in the years ahead.
Though the Covid-19 pandemic will cost India two years of growth, the increased digitisation of the economy and the slew of reforms undertaken by the Modi government will ensure that it overtakes Germany and Japan and crosses the $5-trn GDP mark over the next 7-8 years.
Data reveals that the country’s economy is turning the tide, the people must now demonstrate more awareness and take precautions to influence a huge push towards bringing down the infection rates.
Most major global agencies expect India to record steroid charged growth in 2021, albeit from a reduced base. The much-criticised measures by the government and the RBI to ensure that the country’s macro-economic indicators remain in good shape are now expected to pay rich dividends.
India’s economy is getting warmed up and any dire predictions made towards it at this point are exaggerated. The negative lining brought about by Covid-19 will soon be tempered and it will be business as usual for India.
The Indian economy is expected to contract in the range of 1.1 to 13.6 per cent in FY21 over FY20 under different scenarios of shocks to consumption, investment and exports triggered by the coronavirus outbreak and the associated lockdowns, professional services firm KPMG said on Friday.