Businesses in the county have been in limbo since the latter two quarters of 2021, after seeing a particularly destructive growth rate and drop in GDP. The government has promised to revive the economy, and there are some encouraging predictions for the third quarter of the year. #ThinkWithNiche
Reports suggest that the fiscal growth in the first two quarters of the year has been contracting and there are some assumptions that the country shall revive itself in the third quarter, given a rise in economic activity and lifting lockdown across the country. On the contrary, the U.S.-based rating agency Moody has revealed that given India’s slow pace of vaccination, our growth projection shall have to be slashed down from 13.9 percent to 9.6 percent. India’s growth rate shall grow 9.6% in 2021 and 7% in 2022.
Let Us Look At Some Of The Predictions For The Third Quarter Of 2021
1) GDP To Grow Marginally
Everyone is looking forward to reviving the economy and businesses are desperate for growth, there are some hopes that GDP shall grow marginally in the third quarter and the contraction rate of the past two quarters will recover and be absorbed.
2) Economic Revival
According to the RBI's report, the economy will enter a positive growth zone in the third quarter of this year. According to the predictions, the economy's reflation rate will be remarkably strong and encouraging. The lowering of the infectious curve of the second wave of the covid-19 epidemic, according to an article released by RBI authorities, has created a favorable climate for the implementation of macroeconomic policies, resulting in an increase in economic activity.
3) Sectoral Growth
During the ongoing q3, the supply-side growth determinants are to be led by the manufacturing sector and the demand side is to be dominated by private consumption and government expenditure. Despite these developments, the export sector shall be at a slower pace.
4) Government Expenditure
Government expenditures provide a stimulated growth push to the economy and many are considering the same shall happen in India, given the Government of India’s willingness to increase its expenditure rate in this fiscal year In the third quarter of 2021, strong capital investment and net loans are predicted, compared to a contraction of 39.1 percent in the second quarter. These economic changes are likely to help the economy improve by the end of the third quarter.
The abyss setback of the covid-19 pandemic has dimmed the brightening hope of a better tomorrow, but despite the obstacles, the economy is on the right track, with a lower number of coronavirus cases and an inversely higher vaccination rate, the country's financial situation will be improving by the next fiscal year of 2022, experts predict.