India’s Economy Likely to Jump Back Faster Than Expected: Report

Leading global agencies including Moody’s Investors Services and brokerage firm Barclays revised its predictions for India’s annual growth forecast after the central government’s latest Atmanirbhar Bharat 3.0 stimulus package.

New Delhi: The Indian economy, one of the worst-hit economies in the world amid the coronavirus pandemic, is expected to recover faster than others after it contracted almost 24 per cent in the first quarter of 2020-21. However, a new study revealed on Thursday that about 77 per cent of Indians are optimistic of an economic recovery and business revival

Leading global agencies including Moody’s Investors Services and brokerage firm Barclays revised its predictions for India’s annual growth forecast after the central government’s latest Atmanirbhar Bharat 3.0 stimulus package. Moody’s had earlier predicted India’s annual growth forecast at -11.5 per cent, but it later revised the same to -10.6 per cent.

However, another survey conducted by the Oxford Economics said that India may end up becoming the worst-affected among all major economies of the world even after the pandemic wanes with potential growth of 4.5 per cent over the next five years, as opposed to 6.5 per cent before COVID-19 crisis.

Meanwhile, the nationwide survey of nearly 1,700 respondents comprising both the salaried and self-employed, conducted in November, also stated that 71 per cent of the population has planned to take a personal loan in the next three to six months for two- and four-wheelers, business startups, household durables, electronic gadgets and home renovation.

Among other findings, nearly 46 per cent of the respondents said they expected an increase in household expenses towards consumer durables such as washing machines and dishwashers, and 11 per cent said they would opt for a personal loan to buy these appliances.

With people spending more time at home, almost 38 per cent of the respondents said they would consider getting their home renovated in the coming months, and 15 per cent said they would take a loan for the same.

With inputs from agencies