India’s economy picked up momentum in September, according to a report by the State Bank of India (SBI), which said a further direct fiscal stimulus of 3-5 per cent of gross domestic product (GDP) might be required to offset gap between the equivalent fiscal stimulus hours and the loss in hours. India has handled the pandemic much better, SBI said.
A study by SBI on the working hours lost and equivalent fiscal stimulus value showed a gap of around 10 per cent exists for India vis-a-vis a gap of 11.6 per cent in the lower-middle-income group.India's economy picked up momentum in September, according to a report by the State Bank of India (SBI), which said a further direct fiscal stimulus of 3-5 per cent of gross domestic product (GDP) might be required to offset gap between the equivalent fiscal stimulus hours and the loss in hours. India has handled the pandemic much better, SBI said.#
"Assuming no major second wave, our non-linear least square model on data from March 1 to October 6 shows COVID-19 is likely to subside around February 19," SBI said.
"Corporate results for Quarter 2 Financial Year 2020-21 show that companies producing essential goods have mostly witnessed strong results while those producing non-essential goods/services have mostly shown weaker results,” it said.
Moreover, rating upgrades to downgrade ratio, though much below 1, has shown sign of improvement from Q1 (April-June) level," SBI said. The bank also said the rail freight earnings continues to increase across segments, except for foodgrain, flours and pulses in October 2020 compared to September 2020. Power consumption data also shows an improvement in October over last month.
"October 2020 GST revenue is 10 per cent higher than the GST revenues in the same month last year. The positive trend, which started from September 2020 has sustained. E-way bills, which hit a record high of 5.74 crore in September 2020 have further grown in October 2020 to 6.42 crore," SBI added.
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