The recent surge in Covid-19 infections, the central bank says, adds uncertainty to the outlook on domestic growth as restrictions could dampen demand improvement and delay the return of normalcy.
Aided by strong demand recovery, credit ratio rebounds to 1.33 in H2FY21, from 0.54 in H1FY21. GDP could grow at 11% in FY22, but the resurgence in Covid-19 cases is a key downside risk, says CRISIL.
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%.
While Indian banks' improved financial metrics do not fully reflect the impact of the Covid-19 pandemic, the under–capitalised PSBs are likely to remain risk averse and lose market share.
The health of an economy like India’s can often be gauged by how its midsize companies are doing. The Fortune India Next 500 list delves deep into these companies, to analyse how they are faring.
Rising inflation and firming bond yields in the U.S. push down Indian benchmark indices, causing a correction of around 6% from the latest life–highs of February 16.
While there is an expansion in fiscal deficit in the near term, the Budget does well to outline a path to fiscal consolidation once normalcy in economic activity is restored.
The Finance Minister has laid the foundation for next-generation growth. Having ticked the right boxes, the key proposals have to be implemented to generate tangible results.
