India’s gross domestic product (GDP) growth rate will be 1.3 percent in the fourth quarter of the last fiscal year 2020-21. SBI Research’s report EcoRap has made this estimation. The report is expecting that the Indian economy will decline by about 7.3 per cent in the last financial year. The National Statistics Office (NSO) will release the initial estimates of GDP for the March quarter and 2020-21 on May 31.
Earlier Estimate Was a Fall by 7.4 percent In Entire Financial Year
Further the report states that, “According to our Nowcasting model, GDP growth will be 1.3 per cent in the fourth quarter”. The NSO has forecast a one per cent decline in the fourth quarter. The report said that it expects the GD to decline by about 7.3 per cent in the entire financial year 2020-21. It had earlier projected a decline of 7.4 per cent for the entire financial year.
Nowcasting Model Based on 41 High Cyclic Indicators
The State Bank of India (SBI), in collaboration with the State Bank Institute of Leadership (SBIL), Kolkata, has developed a ‘Nowcasting Model’. This model is based on 41 highly cyclical indicators of industrial activity, service activity and the global economy.
India To Be Fifth Fastest Growing Economy in 25 Countries
The report said that India will be the fifth fastest growing economy in 25 countries. This is based on an estimated growth rate of 1.3 per cent. These 25 countries have released their GDP figures.
Online Stores Selling Goods at High Prices in Pandemic
Earlier in a report the SBI Research said that due to Corona Pandemic, most people are shopping online. Taking advantage of the situation, platforms are selling products at higher prices. Most online stores have made large cuts in discounts during the pandemic.
Reportedly, the prices of products sold at online stores prior to Corona were much lower than their MRP. This was because physical stores were given higher discounts to attract competition and customers. Now, fearing infection and due to lockdown, most customers are shopping online. This has led to cuts in discounts by stores.