Just a few days ago, the informed January-March quarter has predicted GDP growth rate to be better. With this, the decline in annual growth rate in the fiscal year 2020-21 is expected to be limited to 7.5 to 8 percent.
Corona Impact on Indian Economy
The second web of Corona continues to grow towards its peak. After Maharashtra, the rapidly expanding corona economy in Delhi and then across the country is also threatening. Especially on the first day of the week i.e. on Monday, four important wheels of economy went to Corona. The country’s retail inflation jumped to a four-month high of 5.52 percent in March, while industrial production fell for the second consecutive month and fell by 3.6 percent in February.
In such a situation, there is a growing concern about the pace of improvement in GDP (GDP) amid the new wave of Corona. Not only this, the Sensex plunged by 1,708 points on Monday due to panic selling by investors amid fast-growing cases of COVID-19 infection.
Heavy fall in rupee as well
The rupee hit 32 paise and fell to a nine-month low of 75.05 against the US dollar due to Corona’s hit. At the same time, industrial production, measured through the Index of Industrial Production (IIP), fell 3.6 percent in February. Earlier, it declined by 0.9 percent in January. In February, both mining and manufacturing sectors recorded a decline. Along with this, there is an increase in the possibility of GDP growth in the fourth quarter of 2020-21 due to the rapid increase in the case of COVID-19 infection in some states and the industrial activity affected by it.
The effect will be seen here too
Just a few days ago, the informed January-March quarter has predicted GDP growth rate to be better. With this, the decline in annual growth rate in the fiscal year 2020-21 is expected to be limited to 7.5 to 8 percent. The rise in food prices and the rise in fuel prices led to inflation based on the Consumer Price Index at 5.52 per cent in March, compared to 5.03 per cent in the previous month. You can also see the effect. Actually, the speed of Corona is becoming unbridled. In such a situation, if the situation of lockdown is created then the economy may have to suffer heavy losses.
(With language input)
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