The Finance Ministry admitted that the economy might contract during the current fiscal. However, recognition of reform measures is critical for higher anticipated growth in the coming years, it said.
Chief Economic Advisor Krishnamurthy V Subramanian, responding to the growth projections by rating agency S&P and Fitch,said: “What is uncertain though is whether the recovery will happen in the second half of the year or in the next year and therefore the actual growth will depend critically on when the recovery happens. If recovery does not happen this year, the economy will basically have a decline in output and suppose in the second half there is a recovery, that may be limited.”
As per S&P the GDP growth may shrink by 5% this fiscal. Further it expects the economy to bounce back next year with 8.5% growth. Fitch had almost similar projections with 5% contraction during the current fiscal but growth of 9.5% during FY22.
After a contraction in the current financial year, India’s economy is forecast to bounce back with a sharp growth rate of 9.5% next year provided it avoids further deterioration in financial sector health, Fitch Ratings said. The coronavirus pandemic will lead to shrinking of the already slowing economy in 2020-21 that started in April. Fitch Ratings forecast a 5% contraction in the GDP in the ongoing financial year.
CIL has asked the government to lower railway tariff for transportation of coal to customers, a move which will facilitate import substitution and boost its supply volumes. CIL continues to be beset with tepid demand for coal, with most of its customers, like the power sector.
Amid the coronavirus pandemic, thermal coal imports at India’s major ports saw a 35.94% decline to 12.29 million tonnes in the first two months of the current financial year, according to the Indian Ports’ Association (IPA). Coking coal imports witnessed a dip of 24.05% to 7.47 million tonnes in April and May this year. The ports had handled 19.19 million tonnes of thermal coal and 9.84 million tonnes of coking coal, respectively, in the April-May period of the previous financial year.
A clear policy framework regarding energy storage is needed in the new electricity law for the adoption of storage technologies in suitable areas, an industry body has suggested. The Draft Electricity (Amendment) Bill, 2020, floated by the power ministry, seeks amendments to the Electricity Act, 2003, to address a series of challenges faced by the sector and provide measures to improve regulatory discipline, private sector participation and give a thrust on renewable energy sector, among others.