According to a BofA Securities report, the Covid-19 shock could delay India touching the GDP of Japan by three years. In their latest estimates, it will now happen by 2031 if the economy grows at 9%.
Despite the raging Covid-19 pandemic and economic disruptions due to it, Indian investment banking activities grew, hitting a three-year high in 2020, with revenues touching $1.03 billion.
The big question is how much more foreign exchange will the Reserve Bank of India buy, and why?
While the rating agency downgraded India’s sovereign rating, BofA Securities’ economists see the present downturn as cyclical rather than structural; say fiscal stimulus is critical for recovery.
Since April 2001 foreign exchange reserves grew 11.15 times to $476.09 billion in mid-February; the RBI may add $21 billion more by March 2021, according to a BofA Securities report.
