GDP growth in this fiscal depends on intensity of Covid-19: FinMin report – The Financial Express

The country’s actual GDP growth in FY 2020-21 will be contingent upon the intensity, spread and duration of the COVID-19 pandemic within national territory, Finance Ministry.

India continues to tackle the health crisis unleashed by the COVID-19 pandemic and the focus has now shifted to revive the economy which has been debilitated by the lockdown.

Expressing ‘cautious optimism’ about the country’s economic prospects, a Finance Ministry report on Wednesday said actual GDP growth in 2020-21 would be contingent upon the intensity, spread and duration of the COVID-19 pandemic. The report, prepared by the Economic Affairs Division of the Finance Ministry, took comfort from an IMF note which projected a growth rate of 1.9 per cent for the current fiscal. However, it added, “Government is cognizant of the relative severity of lockdown on economic activity in the country and is cautiously optimistic about the signals from Indian benchmark equity indices.”

Observing that these are still early days and COVID-19 is yet to abate, the report said “the country’s actual GDP growth in FY 2020-21 will be contingent upon the intensity, spread and duration of the COVID-19 pandemic within national territory.”

The report further said that downside risks to India’s growth emerge from the high possibility of global slowdown deepening and supply chain disruptions getting exacerbated due to prolonged spread of COVID-19 and lockdowns across countries.

India, it added, continues to tackle the health crisis unleashed by the COVID-19 pandemic and the focus has now shifted to revive the economy which has been debilitated by the lockdown. The government and the RBI are working towards implementing substantial targeted fiscal and monetary measures to support affected sectors of the economy, it said.

via GDP growth in this fiscal depends on intensity of Covid-19: FinMin report – The Financial Express

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s