‘Investment-focused government spend to be among the growth factors'
Crisil said on Tuesday that it expected the Indian economy to grow by 11% in FY 2022, due to the impact of the COVID-19 epidemic after an estimated 8% contraction.
Growth, it has been said, will be driven by four factors – people learning to live with the new normal, the COVID-19 fatality curve flattening, vaccine roll-outs and investment-focused government spending.
However, in this financial year, the pace of development will be different in the first and second phase of the next financial year. In the first half there will be an alternative benefit, due to the lower base effect, the second half will see a more broad-based pick-up in economic activity, ”said Crisil. However, the agency has warned that this recovery will not be easy, adding to the traces of epidemics for small businesses and the urban poor. Crisil said the rural economy was more resilient than urban and services were lagging in the manufacturing sector. It has also been said that trade had become increasingly common compared to the rest of the economy, with imports increasing exports and pre-epidemic levels.
Crisil said, “GDP growth will average 6.3% between 2023 and 2025. This will be lower than the average growth of 6.7% seen in that decade, which was higher than the average of 5.8% among the three criminals in the past.” The rating agency said, “Despite the increase, the Indian economy will suffer a permanent loss of 11% of GDP by 2022-2025 as criminals.” Actual terms as compared to FY 2020.
Corporate revenue, according to a study of 800 firms in 35 sectors, showed a contraction of only 8% on average in the first nine months of this fiscal year, excluding oil, banking, financial services and insurance, which are at the peak of the grammar. Is less than. Of epidemic. Revenue should grow by 15–16% in the next financial year due to volume recovery in areas in two consecutive low-base years and higher by the government especially on the main infra segment of roads, railways and urban infrastructure. Investment expenditure, Crisil said. He said, “Revenue will be only 8-9% higher than 2019 due to optical base-effect.”
Amid the epidemic, revenue of small firms saw a sharp decline relative to large firms due to bargaining power and lack of cash. According to CRISIL Research, the first half of fiscal 2021 saw positive revenue growth, as compared to 35% of the top 100 companies, with less than 20% of the 400 small companies (about 800 listed).