Soon Indian economy to gain momentum bypassing all fears

Corona crisis shocks the Indian economy

AUG 26 (WTN) - As you are aware, economies around the world are witnessing a decline due to the Corona crisis. Even America, the world's largest economy, has not been untouched by the Coronavirus crisis. Indeed, the lockdown imposed to prevent the spread of Coronavirus infection has resulted in a massive slowdown and decline in industries and service sectors and has caused a setback to many economies.

Well, as far as India is concerned, the Corona crisis has also badly affected the economy of India. While the shutdown of industries and offices forced people to lose their jobs, on the other hand, the economy derailed due to less demand. But, despite all the setbacks to the Indian economy, rating agency Moody's has predicted that the Indian economy will be back on track in the second half of this year.

For your information, let's know that Moody's Investors Service has predicted that the GDP of G20 countries like India, China, and Indonesia will pick up the pace in the second half of 2020. However, Moody's still maintains its prediction that India's GDP will decline by 3.1 percent during the year 2020.

Indeed, Moody's stated in its August updated Global Macro Outlook 2020-21, "Economic conditions are comparatively more challenging in the developing countries than in the developed countries. But, we estimate that G-20 countries, India, China, and Indonesia will be the only countries where GDP will pick up enough momentum in the second half of the year 2020, and the economies of these countries will reach to the pre-Corona crisis in 2021."

At the same time, Moody's has predicted that the Indian economy will grow at a rate of 6.9 percent in the year 2021. However, before the Corona crisis, the condition of the Indian economy was not very good due to the global economic slowdown caused by the ongoing trade war between the US and China. India's GDP growth rate was just 4.2 percent during FY 2019-20, the lowest GDP growth rate in the last 11 years.

However, the situation of the Indian economy, which was being expressed the severe decline in the economy due to the Corona crisis, has not yet been achieved. Explain that RBI, the Reserve Bank of India, has estimated that the country's GDP growth rate will decline during FY 2020-21.

At the same time, all rating agencies had predicted that India's GDP would fall by 3 to 9 percent due to the conditions arising out of the Corona crisis. Here, rating agency Fitch Ratings had estimated that India's GDP would decline by 5 percent in FY 2020-21 due to Corona. On the other hand, rating agency CRISIL warned that the worst post-independence recession in India is going to come.

Well, as far as the present day is concerned, after the unlocked situation in the country, the economy is slowly gaining momentum as industries and offices are functioning like normal days. Although the cases of Coronavirus are increasing steadily, economic activity is still increasing. Well, now, the results of the second quarter of the current financial year are coming, it will only be clear how much the Indian economy has managed to cope with the Corona crisis.