Indian economy estimated to contract by 9.6% in 2020, grow at 7.3% in 2021: UN
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Published: Wednesday, January 27, 2021, 8:18 [IST]
United Nations, jan 27: India s economy is projected to grow at 7.3 per cent in 2021, even as it is estimated to contract by 9.6 per cent in 2020 as lockdowns and other efforts to control the COVID-19 pandemic slashed domestic consumption, the UN has said.
The World Economic Situation and Prospects 2021, produced by the United Nations Department of Economic and Social Affairs (UN DESA), said the world economy was hit by a once-in-a-century crisis a Great Disruption unleashed by the COVID-19 pandemic in 2020.
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The global economy shrank by 4.3 per cent last year, over two-and-a-half times more than during the global financial crisis of 2009. The modest recovery of 4.7 per cent expected in 2021 would barely offset the losses of 2020.
ICRA sees a multi-speed recovery in FY22
FY22 GDP value will only mildly surpass the level in FY20
10% GDP growth, in these gloomy times? Too good to be true, isn t it? It s something that looked like a pipe dream back in the March-April period when the country saw an unprecedented lockdown that not only slammed the brakes on growth engines, but brought life to a screeching halt. But if FY21 was marred by COVID-19 gloom, FY22 is being pegged as the harbinger of good news or in other words, a year of hope.
Green shoots are visible across the board, be it manufacturing, consumption and demand or auto sales, as the pandemic-ravaged economy starts to reopen. With the official advance GDP estimates for FY21 pointing to a 7.7% contraction, much less than what was feared, there certainly is some room for optimism. Yes, it may be the biggest annual contraction on record, but the pace of recovery is something that many are taking heart from.
why the poor in India remain poor.According to the World Economic Forum’s Global Social Mobility report, in India, it would take 7 generations for a member of a poor family to achieve average income; in Denmark, it would take just 2 generations to do so.
A key concern leading up to the Budget for 2020-21 was the
falling credibility of Budget numbers. With Covid-19 playing havoc with the economy even before the start of the new financial year, this problem is likely to sustain.
Another key concern in the Budget and this, too, is likely to be a concern in the forthcoming Budget of 2021-22 was the adherence to fiscal rectitude. But the ugly truth about