SBI Report: FY22 growth at 10.4%,

The State Bank of India recently revised the growth of India for the Fiscal Year 2021-22 to 10.4%. Earlier, the bank had predicted the growth rate as 11%. SBI has curbed the growth rate of the country due to the increasing COVID-19 crisis.

Suggestions made by SBI report

• The report says that Government of India should increase the vaccination efforts instead of lockdowns.
• According to the report, the cost of inoculating half the population in thirteen major states will be 0.1% of GDP of the country or 15% to 20% of the health budget of the states. These estimates have been made assuming that the Centre will bear the cost of vaccinating the other half of the population.

Economic Losses due to COVID-19

• The economic losses due to the existing curbs have been estimated as Rs 1.5 lakh crores. Maharashtra alone contributed to 54% of these losses. Rajasthan, Madhya Pradesh and Maharashtra together account to 80% of the losses.
• The business activities of SBI dipped to a five-month low in April 2021.
• Of all the states, Maharashtra has been badly affected by COVID-19. The losses suffered by Maharashtra have been estimated as Rs 82,000 crores. These losses are to increase if the restrictions are increased in the state.

When will conditions normalise in India?

The report has analysed the vaccine drives in other countries. According to its analysis, the infections stabilised in foreign countries after 15% of the population was administered with COVID-19. The report says that India will inoculate its 15% of population only by December 2021.

Month: Current Affairs - April, 2021