The Growth Rate Will Be Better Than The Government Estimates
The growth rate will be better than the government estimates in the financial year 2020-21: SBI report.
The economic condition of the country is improving rapidly and the pace of reform is looking better than the estimates of the government and other agencies.
The SBI’s research report released on Wednesday suggests that India’s economy will decline by seven percent in the current financial year (2020-21). Earlier this agency had reported a decline of 7.4 percent.
While the central government and the Reserve Bank of India (RBI) estimate that the decline will be 7.7 percent. The latest estimates of the growth rate will be released by the central government later this month when the picture will be clearer.
The decline in GDP growth in the first quarter of the current fiscal year was around 24 percent. Based on the signals from various sectors of the economy.
SBI has said that after two quarters, the economic growth rate of the Indian economy will be 0.3 percent in the October-December 2020 quarter, while in the January-March, 2021 quarter it will improve further to 2.5. Can reach percent
According to the SBI report EcoRap, 51 percent of the various indicators of the economy are showing better performance than expected.
Whereas India’s economic growth rate will be at least 11 percent during the next financial year. RBI has recently said that it will be 10.5 percent.
However, the report has recognized that there is not much room for improvement in the fiscal deficit.
The central government says that it will be 9.5 percent in the current financial year, but it has been said to be more in the SBI report.
The biggest reason for SBI to improve its estimate is the announcement of the formation of Assets Reconstruction Company (ARC) and an Assets Management Company (AMC) in the General Budget.
This decision can solve the problem of trapped debt (NPA) in front of the banking sector of the country to a great extent.
This will pave the way for many trapped projects in the country and new employment opportunities will also be created.
In some other countries, including Germany and Malaysia, this measure has helped a lot in solving the problem of trapped assets of banks.
