Leading indicators imply that. The Indian economy is on the mend. With the country’s banks and economy. Definitely moving out of the “black clouds”. Brought on by the COVID-19 pandemic,”. According to an eminent economist. N R Bhanumurthy on Sunday. Bhanumurthy, who is also the Vice-Chancellor. of the B R Ambedkar School of Economics (BASE). Added that the degree of economic. Recovery could take another year to reach pre-pandemic levels.
- The Indian Banks
- The economy in the pandemic
‘There are strong encouraging signs. And the Indian economy may be clearly emerging. Out of the gloomy clouds blanketed by the pandemic,’ he told PTI in an interview. One leading sign to consider. According to Bhanumurthy. Is the solid government revenue collection. Which are greater than budget predictions. Indicating optimism in India’s growth rebound. The Indian economic recovery. According to the prominent economist. Is broad-based, while some components of the services. The industry is still recovering. Qwing to severe supply-side disruptions.
Despite a catastrophic second wave of COVID-19. The Indian economy and bank grew by a record 20.1 percent in the April-June quarter. Aided by a relatively weak base from the previous year. And a remarkable rebound in manufacturing. And services sectors. This year, India is on course. To have the world’s fastest growth rate.
The Bank, Reserve Bank of India (RBI). Has decreased the country’s growth. Forecast for the current fiscal year. To 9.5 percent from 10.5 percent previously. While the World Bank predicts 8.3 percent growth for India in 2021. When it comes to the stock market’s rise. During a period of slowing economic development. Bhanumurthy says it’s typical to remark that stock markets. Don’t reflect the real economy.
In response to recent calls for the massive forex reserves. To be used for infrastructure development or public sector bank recapitalization. The economist pointed out that the reserves. Are mostly hot money that is required. To keep the currency market stable.