LagatarDesk: The Care Rating Agency has reduced the GDP growth rate estimate. CARE Ratings has reduced the growth rate forecast for the financial year 2021-22 to 8.8-9 per cent. Earlier, the rating agency had estimated that in the current financial year 2021-22, GDP will grow at the rate of 10.2 percent. The agency said that agriculture and industries will be the biggest contributor in this. Let us inform that in the financial year 2020-21, there was a decline of 7.3 percent in the country’s economy.
Economy will grow due to agriculture and industry sector
The rating agency said that in the financial year 2022, the country’s economy is doing better on every front. According to the report, the economy will see a boom in the current financial year due to agriculture and industry sectors. Less than 8.2 percent growth can be seen in the service sector.
The biggest crisis of the Corona era is the decrease in demand
Due to the second wave of Corona, businesses like hotels, restaurants, tourism, retail, malls, entertainment have been badly affected. Care Ratings says that even before the Corona crisis, the country’s economy was showing a decline. There was a further drop in demand due to the Corona epidemic.
Fiscal deficit may remain at 7.9 percent
According to the report of the rating agency, the fiscal deficit of the government in the current financial year can be between 17.38 lakh crore and 17.68 lakh crore. Based on the nominal GDP of 222.9 lakh crore, the fiscal deficit is estimated to be 7.8-7.9 percent. Apart from this, the NPA of banks can increase to 10-10.50 percent by March 2022.
Foreign exchange reserves may reach $ 630 billion
The trade deficit in the current financial year is likely to be between 0.50-1.0 per cent of GDP. Foreign Portfolio Investment (FPI) may be lower in the current financial year as compared to last year. It is estimated to be between $ 18-22 billion in 2021. The country’s foreign exchange reserves can increase to $ 620-630 billion.
