Contrary to expectations of rapid growth in FY 2022, this year it will take at least two years for the Indian economy to return to pre-epidemic growth levels, helping to overcome the sharp GDP contraction. This has been said in the Economic Survey 2020-21. Talking about returning to the level of development before the epidemic, based on IMF projections, there will be 11.5 percent real gross domestic product (GDP) growth rate in 2021-22, while there will be 6.8 percent growth in 2022-23.
With these growth projections, India will once again become the fastest growing economy in the world. The survey estimates a 7.7 percent decline in GDP in the current financial year due to Corona. But after this there are also signs of rapid recovery. 11 percent increase in GDP has been claimed in 2021-22.
Talk of recovery in V shape
The survey said that the Kovid epidemic has led to a century-long global crisis in 2020. Whereas in the lockdown, GDP declined by 23 percent in the first quarter of FY 2021. However, after this recovery has been said to be with We Shape (rapid growth).
Drop in demand
Due to Corona, both demand and supply side problems arose in the economy. We need to understand that whenever a crisis comes, people avoid spending and they save their savings for difficult times. This is the reason that demand crisis has arisen due to corona epidemic. The corporate of the country also proceeded on the same lines, which is why there has been a significant decline in consumption.
The way of rating is not right, the loss is happening
KV Subramaniam questioned the rating pattern on behalf of international agencies. He said that the method of rating is not right. This causes us to suffer loss. The current rating is not properly describing the fundamentals of India’s economy. This has a negative effect on foreign investment which is not good. India’s intention to repay its debt is gold standard, its ability to repay debt is also very strong. We are doing better on all aspects. In such a situation credit rating needs to be improved.