Fitch said that if the restrictions are increased to control the epidemic, then these risks are likely to increase, as it will disrupt economic activities.
Rating agency Fitch Ratings said that non-banking finance institutions (NBFIs) were again at risk of asset quality and liquidity amid the second wave of COVID-19. Fitch said that if the restrictions are increased to control the epidemic, then these risks are likely to increase, as it will disrupt economic activities. The rating agency further said that its growth forecast of 12.8 per cent in the current financial year may also be reduced due to increase in the rate of infection and widening of restrictions like lockdown.
“Non-banking finance institutions of India may face fresh asset quality and liquidity risks amidst the second wave of corona virus infection,” Fitch Ratings said in a statement. The rating agency said Maharashtra is the main center of the COVID-19 transition, which contributes 13–14 per cent to the national GDP.
Huge increase in the number of corona cases
Corona’s intimidating figures are now coming out of India. In the last 24 hours, 1,26,789 new cases of infection have been registered across the country. Maharashtra had the highest number of 59,907 cases. The number of new cases has crossed 1 lakh for the second consecutive day in the country. At the same time, 685 people died due to infection in the last 24 hours. Due to increasing cases, the state government is taking steps like lockdown and night curfew.
RBI maintains 10.5% GDP growth estimate
The Reserve Bank of India (RBI) on Wednesday retained the economic growth forecast for the current financial year at 10.5 per cent and said the increase in the COVID-19 transition has created uncertainty about the improvement in the economic growth rate.
Estimated 12.5% GDP in 2021
Relying on India’s growth, the IMF has estimated that India’s GDP could be 12.5 per cent in 2021. This is when the economy of the whole world including India is coming into recovery mode.
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