New Delhi, Jagran Bureau. After the World Bank, the International Monetary Fund and various national and international agencies, the government has now started to believe that due to Kovid-19, the growth rate of the current financial year 2020-21 may decline. Chief Economic Advisor K.K. Subramanian gave clear indications of this on Thursday. He said that economic growth would depend on recovery and recovery could happen in the second half of the current financial year or even next year. He said production is expected to decline this year.
However, he also hoped for the development of V-shape after the Spanish flu-like recovery. Subramanian said that in April this year, the growth rate for the current financial year was being estimated at 1.5-2 percent. But now there are many uncertainties. Keeping in mind the announcements made about the relief package and self-reliant India, the Finance Ministry is conducting an internal assessment on economic development.
Recently, in the case of rating agency Moody’s downgrading India’s rating, the Chief Economic Advisor said that all rating agencies have retained India’s investment grade. He said that there can be no question on India’s debt capacity because India has both the ability and willingness to repay its debt. The Chief Economic Advisor said that rating agency S&P and Fitch had forecast growth rates of 8.5 per cent and 9.5 per cent respectively for next year, which is good news for India.
The Chief Economic Advisor, who is hopeful of the recovery of We Shape after Corona, cited Spanish flu as saying that one-third of the world’s population was infected during that time, while only one percent of the population is infected. The infection mortality rate during the Spanish flu was 10 percent, while it is now 3.4 percent. In such a situation, there is scope for V shape recovery after the corona is over.
Hopeful of investment
Subramanian said that the global pandemic may reduce investment this year, but the government’s announcement of a self-sufficient India package in view of the long period could result in an increase in foreign portfolio investment (FPI). He also said that the strategic sector is being identified under the announcement made for disinvestment of central public companies under self-reliant India. He informed that banking will be placed in the strategic sector. Similarly, other sectors continue to be identified. The number of government companies in the strategic sector will remain one to four.
