ICRA revises FY2021 GDP contraction further downwards to 9.5%

6

New Delhi, July 16 | Rating agency ICRA has revised downwards its forecast of India’s 2020-21 GDP contraction to 9.5 per cent from an earlier estimate of 5 per cent.

The rating agency cited the climbing Covid-19 infections resulting in a spate of localised lockdowns in some states and cities as the reason for the sharp downward revision.

It said that these localised lockdowns are arresting the nascent recovery that had set in during May-June 2020.

“The Indian economy had started to recover from the troughs experienced in April 2020, when the lockdown was at its severest, and many sectors seemed to be adjusting to a new normal. However, the unabated rise in Covid-19 infections in the unlock phase and re-imposition of localised lockdowns in several states, appear to have interrupted this recovery,” Aditi Nayar, Principal Economist, ICRA said in a statement.

“Given the severity of the pandemic and the duration of the safety measures that need to be employed, we now expect a deeper pace of GDP contraction in Q2 FY2021 relative to our earlier forecast. We also anticipate more unevenness, as different regions move in and out of lockdowns, and persisting labour supply mismatches affecting supply chains and consumption patterns.”

According to Nayar, timeline for a firmer recovery out of the contraction phase is now being pushed ahead to at least Q4 FY2021 from Q3 FY2021.

“This presumes that a vaccine will be widely available by then, which now appears necessary for discretionary consumption to recover in certain sectors such as travel, hospitality and recreation,” she added.

Besides, ICRA expects the Indian economy to have contracted by a sharp 25 per cent in Q1 FY2021.

Given the aforesaid concerns, the ratings agency now expects a shallower recovery in the subsequent quarters, with a contraction of 12.4 per cent in Q2 FY2021 and a milder 2.3 per cent in Q3, followed by an anaemic growth of 1.3 per cent in Q4.

On the positive side, the rating agency expects the rural economy to partly counter the slowdown in the urban economy.

It remains optimistic regarding the outlook for agricultural growth and rural consumption, as it benefits from favourable moisture conditions, seasonally high reservoir levels, and returnee labourers at least in some parts of the country.

“The recovery in tractor sales in May 2020 suggests that rural consumer confidence was relatively insulated during the lockdown. Moreover, the reverse migration of a large portion of migrant workers back to the rural areas, suggests a shift in where consumption will take place at the bottom of the pyramid,” Nayar opined.

However, the rating agency has tempered its expectations regarding the extent of fiscal support that may be forthcoming, given the revenue shock being experienced by various levels of governments.

Source: IANS

Sponsors Posts

From being a developer to a CEO in California, Manthan Dudeja's top tips to make money while you're still in college

From being a developer to a CEO in California, Manthan Dudeja's top tips to make money while you're still in college

Gone are the days when one had to finish school, college and subsequent years in getting trained to be able to sustain oneself with decent income. Today, what you earn eventually depends upon your skillset and how early you got started to build an expertise in your domain.

Manthan Dudeja, who currently lives in California and is still in his graduation years, understood the perks of starting early and is now a CEO who has worked across a plethora of jobs, from IoS programming to website development and blogging to trying his hand at Amazon Associates.

In conversation with this dynamic entrepreneur, let’s decode the various options for freshers to make a side income while they are still in school/college –

  • Content writer/Editor

Manthan explains how he started off by writing for blogs with whatever knowledge he had and with the help of internet, this could be by either writing for your own online blog, for instance Manthan was interested in Tech, so he was writing for his blog ‘TechCrack‘ or for someone else in the capacity of a content writer.

It’s not difficult to get started if you have the basic understanding to develop a ‘flow’ while writing a piece and the skill to write what suits your target audience.

  • Software developers/ Programmers/ Coders – Today, software/app developers are earning more than the average of $60 an hour by working remotely. There are a host of online paid/free platforms providing trainings to acquire such skills, Manthan has been an app/website developer for the longest time and by far, this skill has given him the best results for his work.
  • Digital Marketer/ E-Marketer-

Your journey to become a digital marketer starts the day you take the step of self-educating yourself and learning the tricks to attract potential customers either by way of Google, Facebook, or any other digital platform by a host of scalable ways on the internet, undoubtedly, digital marketing is the hottest online work from home concept of this decade.

Manthan is today a successful digital marketer who has equipped himself with the advanced knowledge of online ads on various mediums and has effectively used these skills to generate incredible revenue over time.

These are some of the best ways to get started, according to Manthan, all

 

Sponsors Posts

2 BHK Residential Apartment for Sale in Aadhya Hills Bhita Jabalpur

2 BHK Residential Apartment for Sale in Aadhya Hills Bhita Jabalpur
Aadhya Hills is one of the residential development. It offers spacious and skillfully designed apartments. The project is well equipped with all modern amenities to facilitate the needs of the residents.
  • Property type: Residential Apartment 
  • Offer type: For Sale 
  • City: Jabalpur 
  • Zip Code: 482001 
  • Locality: Bhita 
  • Landmark: Bhita 
  • RERA Registration Number: P-JBP-18-1599 

For more details please click here or visit bhaskarproperty.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here