GDP Growth Rate To Become Positive In The Third Quarter

GDP growth rate to become positive in the third quarter.

The central government, which is engaged in a war-footing to improve the economy battered by Covid, is now expecting the GDP to turn positive in the third quarter (October-December 2020) of the current financial year.

Finance Minister Nirmala Sitharaman said on Thursday that the economy is moving rapidly towards normalcy.

This belief of the finance minister is also due to the report by RBI on Wednesday and the international rating agency Moody’s on Thursday.

RBI had earlier said that the economy will grow at zero rates in the fourth quarter ie January-March 2021, whereas now it is talking about it a quarter ago.

On the other hand, Moody’s has said that the state of the Indian economy is doing better than earlier estimates.

Sitharaman said, “After a very rigorous and long lockdown, there are clear indications that the country’s economy is on the path of strengthening.”

The number of people affected by Covid is also decreasing sharply, GST collections have increased (up 10 percent in October), energy consumption has increased (12 percent annually), FDI has increased by 13 percent from April to August.

Foreign exchange reserves are at record levels, bank credit has also increased (5.1 percent).

Many economists have also said that this improvement is not visible only because of increasing demand, but because the overall economy is strengthening, the situation is getting better. ”

The Finance Minister has also cited the new monthly RBI report, which states that GDP growth in the third quarter is positive (more than zero).

The situation was projected to improve a quarter earlier than the RBI released when presenting the last monetary policy. The economy has reported a decline of 8.6 percent in the July-September quarter.

There was a decline of 23.9 percent in the April-June quarter. Thus, the economy will decline for two consecutive quarters.

Such a situation has not been seen in the last several decades. However, the RBI report suggests that the situation will return to normal faster than previously estimated.

A similar gesture is also reported by rating agency Moody’s. Moody’s has stated that the Indian economy will decline by 8.9 percent during the calendar year 2020 (January-December).

This is better than the agency’s earlier estimates. For the year 2021 too, Moody’s has improved its growth rate for India from 8.1 percent to 8.6 percent.

Moody’s has said that the number of people affected by the coronavirus in India has started to decrease, but its impact on the entire country will be prolonged.