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Will this growth be sustained? That’s difficult to tell since we don’t know how much of this growth is because of pent-up demand, which will wash off after a little while. So, the time it took for producers to restart manufacturing was much shorter. But there was no national lockdown this year only state-wise lockdowns were there in a staggered manner. The really important issue is that due to an extended, nationwide lockdown last year, it took people lots of time to get production back on track. As we saw last year as well, these situations create lot of pent-up demand, which comes to the market as fear factor abates. Pronab Sen, former Chief Statistician, pointed out that the first quarter of FY22 saw the deadly second wave of COVID-19 across the country and “in Q2, the country was coming out of this wave. The RBI may undertake a phased withdrawal of liquidity and start raising policy rates, though any substantial transmission of these higher policy rates to depositors or for lending purposes may not happen immediately.
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In pics | Farmers celebrate, return home after year-long protestsĪn analyst at a Mumbai-based brokerage said that monetary tightening may start soon since growth has revived and core inflation has turned sticky. Unlocking opportunities in Metal and Mining.
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