According to NCAER, Indian economy would increase by 8.4-10.1% this financial year

According to NCAER, the Indian economy would increase 8.4-10.1 percent this fiscal year, compared to 7.3 percent the previous fiscal year.

In its quarterly economic review, the NCAER (National Council of Applied Economic Research) has called for substantial budgetary assistance to spur economic development.

“We estimate that gross domestic product (GDP) will grow 11.5 per cent in Q1 (first quarter) and 8.4-10.1 per cent for the whole year 2021–22. However, these high growth rates are also a reflection of strong base effect since 2021-22:Q1 follows the very steep decline in 2020-21:Q1. At the end of 2021-22 GDP, on constant prices, would still be about the same as Rs 146 trillion (Rs 146 lakh crore) as in 2019-20,” the NCAER stated.

According to NCAER projections, economic growth have decreased by 7.3% during 2020-21.

According to the research, the second COVID-19 wave, which was four times more ferocious than the first wave in terms of number of cases and fatalities, has further disturbed the growth process, which had already been badly harmed by the first wave.

High-frequency indications suggest a severe drop in economic activity between April and May 2021, the height of the second COVID-19 wave, however there are some signs of recovery in June as unlocking continues, the report stated.

After being in this scenario for two years in a row, the growth process now requires a significant positive push, according to NCAER, who said that, luckily, export growth is expected to continue buoyant as the global economy recovers. This, in conjunction with a robust expansionary macroeconomic policy push, may help re-establish normal growth.

According to the research group, the fiscal deficit may stay high for the second year in a row, with revenues impacted by the low level of economic activity.

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