ASSOCHAM expects better 4Q
The positive albeit marginal growth reported in the third quarter of 2020-21 is indeed encouraging and marks a significant turnaround into the Indian economy returning to a positive trajectory after sharp drops in the first two quarters, even as the war against Covid-19 is continuing, industry leaders said in welcoming the GDP growth of 0.4% for the third quarter of FY’21
“The numbers are in line with the expectations and are reflective of the recovery being posted in most of the lead indicators. Going ahead, the roll-out of capital expenditure as announced in the Union Budget earlier this month should crowd in private investments and augurs well for overall economic revival,” FICCI President Uday Shankar said on 26 Feb 2021.
“However, even though recovery is broad basing, the performance of the services sector, which constitutes a major part of our GDP, remains sluggish. Particularly contact-based services like aviation, entertainment, tourism, and hospitality are yet to see momentum in activity,” he pointed out, adding that the Government support to these sectors is much needed.
“Moreover, while we are happy to note that the worst is behind us, the fresh surge in COVID-19 cases being witnessed is a cause of worry,” Shankar cautioned.
While the vaccination drive is progressing well in the country, it is extremely critical at this juncture to maintain caution and substantially speed up the immunization process.
“At this stage of vaccine roll out, the private sector can be an important partner to the Government. This will augur well for sustaining the pace of economic recovery,” he said.
The GDP growth of 0.4 per cent for the third quarter of FY’21 is no surprise, but it marks a significant turnaround into the Indian economy returning to a positive trajectory after sharp drops in the first two quarters, even as the war against Covid-19 is continuing, said ASSOCHAM Secretary General Mr Deepak Sood.
“The 4th and the last quarter of the current fiscal should be far better. As pointed out by ASSOCHAM in its earlier projection, the real recovery would be seen in the FY’22, beginning with the first quarter and then picking up pace later,” Sood said.
He said the services sector which contributes maximum to the GDP remained muted for the better part of the year 2020-21 and it is only in the last few months that the re-opening had started, the same should be reflected in the coming months. With the roll out of vaccines against the Covid-19 picking up pace, we expect the services too catching up. #economy #manufacturing #investment #exports /fiinews.com
