Indian economy (symbolic picture)
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According to Goldman Sox, the Purchasing Managers’ Index (PMI) growth rate in October reached 58 points, breaking a 13-year record. Not only this, the Index of Industrial Production (IIP) has also increased for the first time in six months and has gone up by 0.2 per cent in September. In view of these signs of improvement, the 2020–21 growth rate projections will also have to be improved.
The firm said that the Indian economy may decline by 10.3 per cent in the current financial year. In September, the agency had forecast a 14.8 percent decline. Now it has improved by 4.5 percent. The firm said that Bharti’s GDP will grow at a faster pace of 13 per cent in the next financial year 2021-22. It will be the fastest growing economy in the world.
Moody’s also improved the estimate
The global rating agency Moody’s had also revised the growth rate estimate for the current fiscal in view of the rapid reforms in the Indian economy. Moody’s had said that the Indian economy may decline by 9.6 per cent in the September quarter, but improved it to 8.9 per cent last week. Apart from this, RBI has also forecast a 9.5 per cent decline in GDP in the current financial year. However, rating agencies say that the Indian economy will witness a record boom in the second half of the financial year and become the fastest growing economy next year.