India has been under the influence of the Coronavirus Pandemic for the last quarter of a year. It has been estimating the worst outgrowth of the virus with the economic indicators taking a hit on the outlook of financial disequilibrium. With incessant lockdowns impacting the economy, financial institutions have come to a grinding halt with lockdowns becoming the norm, all transportation activities coming to a stoppage with demand conditions becoming null and void. However, recovery has been noticed in the economic indications after the Pandemic.
Global and Economic Indices (GEO) inspired Fitch Ratings has predicted that the Indian economy is predicted to grow at a rate of 12% in the financial quarter beginning April 1, 2021. It was earlier predicted that the financial growth in the economy would be an estimated 11% in the Pre-Pandemic period. But owing to the increase in mass vaccination, stronger buyout and increased expenditure and manufacturing activities index in the economic infrastructure, positive reviews have ushered in. In the Pandemic period, the economy had contracted by 7% in the last financial quarter. Initially, the economy was expected to grow by 11% owing to the slow economic revival noticed. With a quarter-on-quarter growth of 0.4%, rapid improvement was noticed in the economic indicators.
However, with a spike in Covid 19 cases in the country, economists are fearing that the second wave of lockdown might again downturn the growth and it could spiral back to the level it was in March 2020 when the Pandemic was at its full range. Thereby various measures are being adopted by the financial institutions in the country. Moreover, it is estimated that economic revival would propel the growth of indicators and bring about improvement in function. In the annual financial budget of 2021, a loose accommodating fiscal and monetary policy has been adopted by the Central Government.
Therefore the process of economic revival is expected to be accelerated.