Ind-Ra estimates 5.5 Percent GDP Growth Rate for FY 21
The Mumbai headquartered India Ratings and Research (Ind-Ra) has estimated that the gross domestic product (GDP) of India to grow at 5.5 percent in FY21. The rating agency also hoped that the growth would improve in 2021 but the country’s economy is stuck in a low consumption-low investment phase.
It observed that the shortfall in the tax plus non-tax revenue of the country will make the fiscal deficit slip to 3.6 % of GDP, against the budget target of 3.3 percent. Even after accounting for the surplus transferred to the government by the Reserve Bank of India, the fiscal deficit target could not be possibly achieved, as per Ind-Ra. Sunil Kumar Sinha (Principal Economist and Director Public Finance of India-Ra) stated that though to shore up the economic growth rate, a number of steps have been taken by the Central Government in over the last few months that includes the corporate tax rate cut, to revive the domestic demand cycle the government requires a strong policy as the steps taken may not be beneficial for the country in the longer run.