The impact of the steps taken by the government on the poor condition of the economy due to Coronavirus will be seen next year.
The impact of the steps taken by the government on the poor condition of the economy due to Coronavirus will be seen next year. The current contraction in GDP will end in 2021 and may go up to six per cent. This is stated by the leading economists and industry leaders in the webinar ‘Economic Outlook: Post-Pandemic’ organized by ASSOCHAM.Ajit Ranade, President and Chief Economist of Aditya Birla Group, said that the economy has suffered a lot due to the lockdown in the last three months. There has been a 15 per cent decline in the first quarter of the financial year. Foreign investors have withdrawn $ 16 billion from Indian markets. During this period, domestic investors continued to invest and about 90 thousand crore rupees have come back in the stock market. According to Ranade, there will be a rapid recovery at the rate of at least 6 percent in FY 2022 due to several reasons.
Only this sector is expected to grow 3 to 4 percent in GDP. Farmers will get a lot of benefit from the MSP launched by the state governments. Along with this, self-reliant India package of Rs 20 lakh crore and Prime Minister’s poor welfare package will also benefit.NPAs of banks may increaseTirthankar Patnaik, Chief Economist of the National Stock Exchange (NSE), says that despite the initial downside in the stock markets, it has taken very little time to make a comeback. Markets are making a steady comeback since 20 March.
The reason for this is that Indian and global stock markets have considered coronavirus to be of short term nature. He said that the NPA may increase to 12 to 15 percent. Shekhar Shah, director general of the National Council of Applied Economic Research, says that the country is moving towards a big change at this time. Digitalization is a major factor in this