Comments
Domestic rating agency ICRA on Monday forecast a 2 per cent uptick in growth during the March FY21 quarter, and 3 per cent from the gross value-added perspective.
This would mean that the NSO projection of a double-dip contraction is avoided.
Also read: Second wave to delay air passenger traffic recovery: ICRA
ICRA has pegged the contraction in GVA at basic prices and the GDP (at constant 2011-12 prices) in FY2021 at 6.3% and 7.3%, respectively
Its chief economist Aditi Nayar expects the annualised GDP growth at 2 per cent in the March quarter, up from 0.40 per cent in the December quarter.
The agency has projected the GVA growth at 3 per cent in Q4 of FY21, up from 1 per cent in Q3, suggesting that the double-dip recession implied by the National Statistics Office (NSO) for Q4 is averted.
Also read: Build India to drive mining, construction equipment demand in 2021, says ICRA
“We have forecast GDP growth to trail the GVA expansion in Q4, on account of the assessed impact of the back-ended release of subsidies by the government. Given the latter, we believe the trend in the GVA performance may be a more meaningful gauge of the economic recovery in Q4,” Nayar said.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.