According to the DBS Research Report, after the ban on economic activity has been lifted, the economy has improved due to increase in demand during festival season, increase in second consumption and improvement in capacity utilization.
The country’s GDP can reach 1.3 percent during the quarter ended December in the current financial year. During the first two quarters, a big decline was recorded due to the outbreak of Corona virus epidemic. It has been said in a report. The government will release the GDP data for the quarter in December of the current financial year.
A report released by DBS Bank stated that GDP may fall by 6.8 percent during FY 2020-21. According to the bank’s report, in the last quarter (October-December) of the calendar year 2020, the GDP rate can fall in the positive range.
Things are improving rapidly
Radhika Rao, Research Economist, DBS Group, said that the rapid improvement in the status of Kovid-19 in the country and the rapid increase in people’s spending have been two factors that will be better for the December 2020 quarter. India’s GDP declined by 24 percent during the first quarter and 7.5 percent in the second quarter. According to the latest DBS report, now it will become positive in the third quarter and will increase by 1.3 percent.
The effect of increasing demand will be seen
According to the DBS research report, after the ban on economic activity has lifted, the economy has improved due to increase in demand during festival season, increase in second consumption and improvement in capacity utilization. Along with this, activities have also started in various areas. The Economic Review for the year 2020-21 forecast 11 percent growth during the next financial year. This estimate is marginally higher than the Reserve Bank’s estimate of 10.5 percent increase. However, according to the International Monetary Fund (IMF), India will achieve 11.5 percent growth in 2021. Earlier, the government had to bear the brunt of opposition due to negative GDP in the earlier quarters. However, due to the Corona epidemic, the economy conditions of many big countries of the world were more or less the same. Now if the GDP figures remain positive in the December quarter, then it will be a big boost for the economy as well as the government.
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