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24 May, 2021 13:02

India to avoid recession with economy forecast to grow despite Covid crisis

India to avoid recession with economy forecast to grow despite Covid crisis

India’s rating agency ICRA on Monday projected a 2% uptick in growth during the fourth quarter (January-March) of 2021, averting a double-dip contraction forecast by the National Statistics Office (NSO) for Q4.

According to the agency’s chief economist Aditi Nayar, GDP growth was up from 0.40% in the December quarter. The agency has also projected gross value-added (GVA) growth at 3% in Q4, up from 1% in Q3.

“We have forecast GDP growth to trail the GVA expansion in Q4, on account of the assessed impact of the back-ended release of subsidies by the government. Given the latter, we believe the trend in the GVA performance may be a more meaningful gauge of the economic recovery in Q4,” Nayar said as quoted by the Press Trust of India.

India's latest upsurge in Covid-19 cases was projected to hamper the nation’s economic recovery, hitting some of its key sectors.

Also on rt.com India’s exports nearly triple in April despite huge spike in Covid-19 infections

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