India’s economy will take almost 7 quarters from Q4 FY21 to reach the pre-pandemic level in nominal terms, and there will be a permanent output loss of around 9% of GDP. On the back of a better than expected recovery, it is estimated that FY21 GDP will face a contraction of 7.4%, compared to 10.9% estimated earlier, SBI Ecowrap report said. The forecasted GDP growth for Q3 would be around 0.1%.
Union Coal minister Pralhad Joshi held a meeting with representatives of cement manufacturers and deliberated on strategies to simplify transfer of mining leases and promote exploration and mining activities.
Declining for the second straight month, India’s exports dipped 8.74% on a yearly basis in November to USD 23.52 billion on account of contraction in shipments of key sectors like petroleum, engineering, chemicals and gems and jewellery, even as trade deficit narrowed to USD 9.87 billion. Imports declined for the ninth month in a row, slipping 13.32% to USD 33.39 billion in November 2020, government data showed.
S&P Global Ratings raised India’s growth forecast to (-) 7.7% for the current fiscal, from its earlier estimate of (-) 9% on the back of rising demand and falling COVID infection rates. The rating agency sees India’s growth rebounding to 10% in the next fiscal (FY22).
Coal and Mines Minister Pralhad Joshi said public sector coal companies, including state-owned Coal India, will adopt alternate transport methods, including mechanised conveyor systems, computerised loading onto railway rakes, among others, for movement of coal in large mines, replacing road transport.
Ratings agency Crisil revised upwards its FY21 GDP contraction estimate to 7.7% from the earlier expectation of 9%, The agency, however, said that the GDP will grow by 10% in FY22 on a very low base of previous fiscal year.