• Privacy Policy
  • About Us
  • Contact Us
  • Home
  • Business
  • Computers
  • Gear
  • Real Estate
  • Review
  • Technology
No Result
View All Result
  • Home
  • Business
  • Computers
  • Gear
  • Real Estate
  • Review
  • Technology
No Result
View All Result
Cartographeum
No Result
View All Result

Moody’s revises India’s 2020-21 GDP contraction to 10.6%

Juliet Woodard by Juliet Woodard
November 19, 2020
Home Business
Share on FacebookShare on Twitter

It had estimated a drop of 11.5%. It also marginally elevates forecast for 2021-22 GDP growth from 10.6% to 10.8%.

Moody’s Investors Service has revised its GDP projection for India in 2020-21 to a 10.6% contraction compared to a 11.5% drop it had estimated. The rating agency has also marginally elevated its forecast for 2021-22 GDP growth from 10.6% to 10.8%. “Consumer confidence in India remains relatively low amid a continued elevated number of daily new coronavirus cases, although this has come down from a peak in September,” Moody’s said in a note issued on Thursday. “Estimates from the Centre for Monitoring Indian Economy show that unemployment remains high, although both urban and rural unemployment rates have recovered from peaks in April and May during the nationwide lockdown”, it noted.Moody’s termed the Centre’s November 12 package of stimulus measures ‘credit positive’. It said they present ‘a potential upside to our current growth forecasts.’ “We currently expect India’s growth to reach 10.8% in the fiscal 2021 [ending March 2022], compared with our earlier forecast of 10.6%, and to settle around 6% in the medium term. We have revised our real, inflation-adjusted GDP forecast for fiscal 2020 to a 10.6% contraction, from a 11.5% drop previously,” it stated.Stimulus effects “The latest measures aim to increase the competitiveness of India’s manufacturing sector and create jobs, while supporting infrastructure investment, credit availability and stressed sectors,” it said on the package estimated to be worth about $36 billion or 1.4% of Moody’s GDP forecast of this year. “The latest package follows the INR 467 billion [0.2% of GDP] of stimulus announced in October and close to INR 2 trillion (1% of GDP) of direct spending allocated in the government’s first stimulus package in May. The government expects that no new borrowing will be required to fund the additional spending,” it observed. Also read | GDP shrank 8.6% in Q2 pushing economy into recession: RBIAlong with the wage support provided to businesses by the government in the form of new employees’ EPF contributions, the push to scale up production under the Production-Linked Incentives scheme could increase employment in India’s persistently soft labour market, Moody’s hoped. The extension of the emergency credit line guarantee scheme till March 2021, with the inclusion of stressed sectors under its ambit, ‘will boost credit flow, a key element in the economy’s recovery’, it said. Fiscal worries “Stronger nominal GDP growth over the medium term would make it easier for India’s government to address its weak fiscal position, which the coronavirus has exacerbated; we forecast government debt to increase to 89.3% of GDP in fiscal 2020 and decline to 87.5% in fiscal 2021, from an already elevated 72.2% in fiscal 2019,” it stated. “By contrast, we forecast the median for Baa-rated peers to rise to 60.8% in 2020. The country’s mixed track record on revenue-raising measures lowers prospects for fiscal policy-driven budget consolidation. A sustained increase in GDP growth would, therefore, likely be a major driver of any durable future fiscal consolidation,” it said. Moody’s expects the general government fiscal deficit to remain wide, reaching around 12% of the GDP, with some upside risk, in 2020-21, before narrowing to about 7% of GDP over the medium term, which would still be higher than the deficit of 6.5% of GDP recorded in 2019-20.

Tags: GDP forecastGDP growthGDP projectionMoody’s Investors Servicemoody's
Juliet Woodard

Juliet Woodard

Next Post
IFIN to sell external corporate loan book

IFIN to sell external corporate loan book

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended.

India Approves 16 Companies Including Apple Suppliers for Smartphone Incentive Plan

Apple Lobbies for Lower Taxes to Boost US Chip Production

October 23, 2020
Tesla Autopilot Scores Low for Driver Engagement in European Safety Rating

Tesla Autopilot Scores Low for Driver Engagement in European Safety Rating

October 1, 2020

Trending.

Navigating Online Marketplaces? 12 Tips For Real Estate Newbies

Navigating Online Marketplaces? 12 Tips For Real Estate Newbies

January 13, 2021
Brookfield to buy 18% of RMZ’s assets for $2 billion

Brookfield to buy 18% of RMZ’s assets for $2 billion

October 19, 2020
Rock Legend Gene Simmons Kisses His California Estate And High Taxes Goodbye

Rock Legend Gene Simmons Kisses His California Estate And High Taxes Goodbye

November 1, 2020
Left slams RBI proposal to give banking licences to corporates

Left slams RBI proposal to give banking licences to corporates

November 24, 2020
Richest Cities And Poorest Cities In Every State In 2021

Richest Cities And Poorest Cities In Every State In 2021

December 22, 2020

Cartographeum brings you the latest information about Tech,Real Estate & Business.

Follow Us

Categories

  • Business
  • Computers
  • Gear
  • Real Estate
  • Review
  • Technology
  • Uncategorized

Tags

Amazon Apple Watch 2 Best iPhone 7 deals Bombay stock exchange BSE Business Buying Guides china closing trade coronavirus COVID-19 currency dollar rate economy Finance Ministry foreign exchange forex gold india indian economy Indian stock market Industry iOS 10 lockdown luxury homes market and exchange markets nifty Nirmala Sitharaman NSE oil pandemic Playstation 4 Pro rbi real estate Reserve Bank of India rupee rupee rate Rupee value rupee vs dollar sensex Sillicon Valley stock exchange Stocks USD

Recent News

The Most Popular Cities For Millennial Homebuyers According To LendingTree

The Most Popular Cities For Millennial Homebuyers According To LendingTree

January 19, 2021
As Day Zero Approaches, Home Builders Need To Prepare

As Day Zero Approaches, Home Builders Need To Prepare

January 18, 2021
  • Privacy Policy
  • About Us
  • Contact Us

© 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.

No Result
View All Result
  • Home
  • Review
  • Computers
  • Gear

© 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.