India’s economic recovery will be stronger than previously expected: Economists

With fiscal expansion and vaccine hopes, India’s path to economic recovery will be stronger than previously thought. Second most populous country and Asia’s third-largest economy, India, is set to recover in this fiscal year. India has begun a huge vaccination drive which has seen a steep fall in Coronavirus cases over the past few months. India’s federal budget is due on February 1.

The poll of 50 economists showed the economy would grow 9.5 percent next fiscal year after contracting 8 percent in the current year. But when asked how long it would take for the economy to recover to its pre-COVID-19 level, 26 of 32 respondents said it would take up to two years.

The Reserve Bank of India, which has slashed its main repo rate by 115 basis points is expected to keep its benchmark lending rate at 4.0% through at least 2023.

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