Two years after losing the coveted title, India stands a chance to grab its spot. Thus, the spot claims to be the world’s fastest-growing economy again.
According to a London-based data analytical firm GlobalData, The Indian economy will grow at 9.7% in 2021. Furthermore, this will be faster in comparison to all other major economies in the world. Hence, being an extremely sharp recovery from the technical recession that the country is currently dealing with.
GlobalData’s optimistic estimates are based on the massive inflows of foreign direct investments into the country. Over the past months including the Narendra Modi government’s over 20 Lakhs crore economic stimulus package. The recent drop in COVID-19 cases in India, and the comeback of demand during the festive season.
The firm believes that the kick-off of the vaccination drive India will prepare sectors. This will include transformation, hospitality, and entertainment which saw some serious damage to its path of recovery. According to Globaldata, early signs of the revival of the Indian economy are already visible.
“The easing of restrictions along with huge fiscal stimulus from the government; has resulted in marginally better performance of Purchasing Managers’ Index. Along with manufacturing and services since August 2020,” said Gargi Rao, economic research analyst at GlobalData.
The firm also expects the industrial sector to grow rapidly in the first quarter of 2021. With capital and construction goods output to increase as the economic activity steadily picks its pace.
In addition to its previous statements, it also pointed out that “Indian states have equally performed well in increasing domestic demand thereby increasing GST (goods and services tax) collections. This is a major catalyst for reviving economic growth numbers.”
We can conclude that the economic growth revival in global demand will lead to more exports from India.
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