India's domestic demand is showing signs of recovery, supported by several positive developments, according to a recent report by Crisil.
The CRISIL report also states that power generation is estimated to have increased around 5.4 per cent year-on-year to 136 BUs this November, more than meeting the monthly demand.
SFBs are expected to grow their advances by a robust 25-27 per cent this fiscal, according to a CRISIL Ratings report.
These states, which account for over 90 per cent of India’s gross state domestic product, grew at 7.5 per cent last fiscal, according to the CRISIL Ratings report.
In a recent report, rating agency CRISIL has said the costlier onion, tomato and potato have spiked the cost of a home-cooked vegetarian thali by 8% in April to Rs 27.4 compared to Rs 25.4 in the same month last year.
Besides, it said that trade has also normalised faster than the rest of the economy, with both exports and imports scaling pre-pandemic levels.
"For the record, sales had recovered to over 80 per cent of pre-pandemic levels in the third quarter and are expected to recover almost fully by the close of the current quarter," Crisil said in a statement.
With this, the states' aggregate gross fiscal deficit (GFD) will not only get expanded to an all-time high of Rs 8.7 lakh crore, or 4.7 per cent of GSDP.
A faster-than-expected revival in activity in the second quarter, which continues into the festive season, is one of the reasons for the revision, the agency said in its research report.
Early into the lockdown, 968 companies, or nearly 27 per cent of the sample set, had opted for the moratorium allowed by the RBI. As much as 98 per cent of these are not seeking an OTDR.
