Small and Medium-Sized enterprises account for 29 per cent of the nation's GDP, 49 per cent of exports, and more than 63 million businesses nationwide says Umesh Revankar, Executive Vice Chairman, Shriram Finance.
Amazon founder Jeff Bezos has warned consumers and businesses to postpone large purchases during the holiday season in anticipation of an economic recession.
Reserve Bank of India Governor Shaktikanta Das said a synchronised tightening of monetary policy globally has progressively increased the risk of a hard landing, which is a recession to tame inflation. India, however, is differently placed.
After US Federal Reserve hikes key interest rates by 75 basis points, the Bank of England raised bank rate by 75 basis points -- the highest since 1992 -- to 3 per cent for combatting inflation growing in double digits and to curb the energy price crisis in the country.
The Bank of England has warned the UK risked being plunged into the longest recession in 100 years after it pushed up the cost of borrowing to 3 per cent in the biggest single interest rate rise since 1989.
More than one in two senior business executives globally (59 per cent) believe there will be a recession in the coming year, according to an IDC survey.
US Treasury Secretary Janet Yellen also warned that a default on US debt would "likely precipitate a historic financial crisis" that would compound the damage of the continuing public health emergency.
The RBI also said that the NSO estimates for the second quarter expected at the end of November 2020 will formally bear out the extent of improvement that occurred in the quarter gone by.
CRISIL also foresees economic activity in states with high Covid-19 cases to suffer prolonged disruption as restrictions could continue longer.
According to CRS, the pandemic crisis is challenging governments to implement monetary and fiscal policies that support credit markets and sustain economic activity, while they are implementing policies to develop vaccines and safeguard their citizens.
