Growth constraints

State govt finances would remain under pressure for years

Topics
Nirmala Sitharaman | Indian Economy | India GDP growth

Business Standard Editorial Comment  |  New Delhi 

Union Finance Minister Nirmala Sitharaman noted on Tuesday that the growth rate in the current fiscal year might be near zero. This is an overly optimistic estimate because most forecasters, including the Reserve Bank of India (RBI), expect a near double-digit decline in real output this year.

The level of contraction might optically make the recovery look strong in the next fiscal year and position India as one of the fastest-growing large economies in the world. However, policymakers can’t afford to get carried away by such numbers. The pandemic pain is likely to be more enduring ...

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, October 29 2020. 01:05 IST
RECOMMENDED FOR YOU
.