Economy picks up pace, after RBI, ICRA also forecast double digit growth

In April and May, numerous states were put under lockdown as a result of the second wave of Corona. Despite this, ICRA, a rating agency, has forecasted GD.

Many states enforced lockdown at the local level as a result of the second wave of corona, according to the lockdown rating agency ICRA. These lockdowns, however, were ‘incomplete’ un and of themselves. There was an improvement in the economy once these local lockdowns were lifted, and as a result, it has regained momentum.

Owing to the shutdown in April and May, there will be double-digit increase in Q1 due to the second wave of corona in several areas around the country. Despite this, the rating agency ICRA predicts that the country’s GDP would rise by double digits in the months of April and June.

According to ICRA, the underlying reason for GDP growth in the first quarter of 2021-22 being double digits is a significant drop in the country’s economic growth rate in the same quarter of 2020-21. Because to the lower level of comparability in 2020-21, the economy’s growth rate is expected to be in the double digits.

ICRA
ICRA

According to PTI news, ICRA claimed in its research that the country’s GDP dropped by 23.7 percent in April-June last year as a result of the shutdown. During this time last year, there was a nationwide lockdown.

The Reserve Bank of India (RBI) has published another forecast for the Indian economy, this time predicting a growth rate of more than 10%. According to Reserve Bank Governor Shaktikanta Das, the economy is booming. There’s no need to downgrade the GDP growth projection.

In fact, the RBI forecasted 10.5 percent GDP growth for the current fiscal year during its monetary policy meeting in April. However, in light of the second wave of Corona, the RBI cut its GDP growth projection for this fiscal year from 10.5 to 9.5 percent last month. The RBI has now forecasted a 10.5 percent growth rate for the country’s GDP.