Business News Live: Experts say economic recovery needs fiscal and monetary support
Experts say economic recovery needs fiscal and monetary support
Experts believe that economic recovery will continue to require both fiscal and monetary support, and the government will need to quickly correct the protectionist stance and speed up trade deals, PTI reported.
Brickwork Ratings chief economic adviser Mr. Govinda Rao said first-quarter GDP growth was quite close to the growth estimate released by the RBI. India Ratings and Research said services were still struggling, as they only rose 11.4% in the June quarter.
EY India Chief Policy Advisor DK Srivastava said the agriculture and power, gas and water sectors performed relatively well from their first quarter levels 2019-2020. CIFAR chief economist Aditi Nayar said the weak base of last year’s strict national lockdown masked the impact of the second wave of COVID-19.
India Inc Says Pandemic Affected Economy Bounced Back
After the GDP figures released on Tuesday, the chamber of industry CII said it was good to see the rebound in GDP growth despite the negative impact of the second wave of the pandemic on economic activity, PTI reported.
The PHDCCI said the significant and proactive reforms undertaken by the government have resulted in a strong recovery today.
Assocham said India’s economy is rapidly turning into a catch-up mode with 20.1% GDP growth in April-June 2021-22.
Indian economy grows 20.1% in first quarter on weak basis
India’s economy grew 20.1% in the April-June quarter of this fiscal year, helped by a weak base from the previous year, according to data released Tuesday by the National Statistics Office (NSO) . However, the economy has yet to regain its pre-COVID level.
Gross domestic product (GDP) contracted 24.4% in the corresponding quarter from April to June 2020-21.
In terms of value, GDP stood at 32,38,020 crore in April-June 2021-2022, compared to ₹ 35,6,6,708 crore in the corresponding period of fiscal year 2019-2020.
“GDP at constant prices (2011-12) in the first quarter of 2021-22 is estimated at Rs 32.38 lakh crore, compared to Rs 26.95 lakh crore in the first quarter of 2020-21, showing growth of 20.1 per percent from a contraction of 24.4 percent in the first quarter of 2020-21, “the ONS said in a statement.
Google is again delaying the return to the office
Google CEO Sundar Pichai said on Tuesday the company was extending its voluntary return to office policy until January of next year.
In an email to employees, Pichai noted that while conditions are improving in some places, there is uncertainty caused by the COVID-19 pandemic in many parts of the world.
“Beyond January 10, we will allow countries and locations to determine when to end voluntary homework based on local conditions,” Pichai said. Google previously delayed its return to office policy from September to October.
Sensex, Nifty open higher
India’s benchmark stock indexes opened higher after hitting a new high the day before.
At 9:15 am, Sensex opened 0.37% higher to 57,763.53 and Nifty opened 0.31% to 17,185.60 amid mixed global indices. The IT, FMCG, banking and auto indices led the gains.
Oil stable before OPEC + decision
Oil prices were stable ahead of an OPEC + meeting, at which major producers will decide whether to stick to a plan to add 400,000 barrels per day (bpd) each month until December, Reuters reported.
The move will come at a time when COVID-19 cases are skyrocketing in Asia and U.S. refiners are assessing flood damage in the wake of Hurricane Ida.
US West Texas Intermediate (WTI) crude futures rose 0.1% to $ 68.57 per barrel and Brent crude futures rose 5 cents to $ 71.70 per barrel .
Asian stocks down
Asian stocks lost their recent gains as slowing global growth in several countries weighed on traders’ minds, Reuters reported.
The largest MSCI index of Asia-Pacific stocks excluding Japan fell 0.4%. Chinese blue chips fell 0.44% on Tuesday while Hong Kong lost 0.5% on slower Chinese growth.
Australian stocks fell 0.58% while Japan’s Nikkei gained 0.89% after data showed capital spending by Japanese companies increased in the second quarter.