India's GDP growth for 2020-21 to remain between -6% to 1% : N K Singh

by Nidhi Bhati

India’s real GDP growth during 2020-21 could be between minus six per cent and one per cent due to the Covid-19 induced nationwide lockdown, 15th Finance Commission (FC) N K Singh stated after the first meeting of the FC’s committee on fiscal consolidation roadmap. However, Singh added that considering the uncertainty about emerging outlook, the magnitude of Covid-19 impact is too early to be assessed now and will need to be carefully monitored over the coming months. The FC Chairman noted that additional expenditures to tackle Covid-19 pandemic and reduction in economic activity would push up the general government debt to GDP ratio in 2020-21. However, the Centre will not need to amend its Fiscal Responsibility and Budget Management (FRBM) Act due to a wider deficit on account of additional borrowing as it can use the escape clause for natural calamities, Singh explained.

References
1. https://www.indiatoday.in/business/story/india-s-gdp-growth-to-remain-between-6-to-1-financial-commission-chairman-1680560-2020-05-22
2. https://www.business-standard.com/article/economy-policy/all-options-open-to-govt-to-monetise-deficit-under-rbi-guidance-n-k-singh-120052101724_1.html
3. https://www.financialexpress.com/economy/covid-effect-debt-to-gdp-ratio-to-rise-in-this-fiscal-says-finance-commission-chairman/1966829/
4. https://www.thehindubusinessline.com/economy/linking-borrowings-with-reforms-will-help-states/article31643835.ece
5. https://indianexpress.com/article/business/economy/have-to-make-substantive-expenditures-to-tackle-pandemic-6421752/
CMIE STATISTICS
Unemployment Rate
Per cent
23.6 -0.2
Consumer Sentiments Index
Base September-December 2015
40.1 -0.9
Consumer Expectations Index
Base September-December 2015
41.4 -0.7
Current Economic Conditions Index
Base September-December 2015
38.0 -1.2
Quarterly CapEx Aggregates
(Rs.trillion) Jun 19 Sep 19 Dec 19 Mar 20
New projects 1.12 2.19 5.02 3.08
Completed projects 0.88 0.85 1.65 1.30
Stalled projects 0.13 0.41 0.60 0.59
Revived projects 0.29 0.54 0.83 0.42
Implementation stalled projects 0.98 0.85 0.15 5.79
Updated on: 30 May 2020 8:28PM
Quarterly Financials of Listed Companies
(% change) Jun 19 Sep 19 Dec 19 Mar 20
All listed Companies
 Income 4.7 -2.2 -1.7 -0.2
 Expenses 2.7 -3.1 -2.2 1.2
 Net profit 17.4 -2.3 -9.9 -3.7
 PAT margin (%) 6.2 5.3 5.2 9.5
 Count of Cos. 4,471 4,430 4,379 366
Non-financial Companies
 Income 2.4 -6.4 -5.4 -4.1
 Expenses 1.7 -6.7 -6.3 -3.6
 Net profit -8.6 -14.5 -13.0 2.6
 PAT margin (%) 6.3 5.8 5.8 11.0
 Net fixed assets 10.4 21.5
 Current assets 4.9 9.1
 Current liabilities 4.9 8.1
 Borrowings 8.5 15.1
 Reserves & surplus 6.1 14.3
 Count of Cos. 3,349 3,325 3,280 294
Numbers are net of P&E
Updated on: 30 May 2020 8:28PM
Annual Financials of All Companies
(% change) FY17 FY18 FY19
All Companies
 Income 6.1 8.1 14.7
 Expenses 6.1 9.6 15.0
 Net profit 26.2 -39.9 20.5
 PAT margin (%) 3.3 2.1 3.2
 Assets 8.6 10.9 9.9
 Net worth 9.6 7.5 9.3
 RONW (%) 5.8 3.5 5.3
 Count of Cos. 28,112 25,794 18,040
Non-financial Companies
 Income 5.8 8.3 15.4
 Expenses 6.0 8.4 15.9
 Net profit 22.9 -8.7 18.8
 PAT margin (%) 2.9 2.8 4.0
 Net fixed assets 9.2 6.9 5.7
 Net worth 8.9 6.0 8.8
 RONW (%) 6.2 5.7 8.1
 Debt / Equity (times) 1.1 1.0 0.8
 Interest cover (times) 2.0 2.2 2.8
 Net working capital cycle (days) 85 76 57
 Count of Cos. 22,951 21,018 14,184
Numbers are net of P&E
Updated on: 29 May 2020 9:58AM