India's economy to reach pre-Covid levels only in late 2022: Raghuram Rajan

by Nidhi Bhati

Former Reserve Bank of India (RBI) Governor Raghuram Rajan expects the Indian economy to reach the pre-Covid levels only in late 2022. In an interview to ET now, Rajan cautioned that while the Indian markets have been attaining new highs every day on the back of vaccine development and liquidity, structural problems of the economy are far from over and will come to light now. He said that the deep problems in the informal economy have not yet been recorded properly and the job losses could be more permanent in nature along with millions of recorded losses in the formal economy. To pull the economy from its current dismal state, the former RBI governor suggested the government to go for stake sell of public sector companies and use the funds for more infrastructure development. Rajan further stated that in the upcoming Budget for 2021-22, the government must prioritise its spending and provide more relief to the poor, small and medium firms and focus on infrastructure spending.

References
1. https://economictimes.indiatimes.com/news/economy/policy/raghuram-rajans-budget-advice-to-finance-minister-nirmala-sitharaman/articleshow/80266549.cms
CMIE STATISTICS
Unemployment Rate (30-DAY MVG. AVG.)
Per cent
7.9 -3.6
Consumer Sentiments Index
Base September-December 2015
53.2 0.0
Consumer Expectations Index
Base September-December 2015
54.8 0.0
Current Economic Conditions Index
Base September-December 2015
50.7 0.0
Quarterly CapEx Aggregates
(Rs.trillion) Mar 20 Jun 20 Sep 20 Dec 20
New projects 3.80 0.83 1.05 0.86
Completed projects 1.76 0.25 0.72 0.49
Stalled projects 0.73 0.11 0.08 0.30
Revived projects 0.42 0.68 0.36 0.08
Implementation stalled projects 10.18 0.09 0.07 0.12
Updated on: 16 Jan 2021 8:28PM
Quarterly Financials of Listed Companies
(% change) Mar 20 Jun 20 Sep 20 Dec 20
All listed Companies
 Income -5.0 -27.6 -6.2 6.7
 Expenses -1.9 -27.9 -10.1 2.7
 Net profit -48.9 -40.2 45.2 26.9
 PAT margin (%) 2.3 5.3 8.3 21.4
 Count of Cos. 4,355 4,347 4,310 64
Non-financial Companies
 Income -9.0 -37.4 -10.4 7.0
 Expenses -4.9 -37.6 -14.0 2.9
 Net profit -50.1 -55.8 29.9 26.9
 PAT margin (%) 3.2 4.5 8.1 21.7
 Net fixed assets 13.3 5.9
 Current assets 3.6 0.8
 Current liabilities 6.2 -2.8
 Borrowings 15.9 8.1
 Reserves & surplus 1.3 4.5
 Count of Cos. 3,239 3,235 3,213 44
Numbers are net of P&E
Updated on: 16 Jan 2021 8:28PM
Annual Financials of All Companies
(% change) FY18 FY19 FY20
All Companies
 Income 8.4 13.5 0.2
 Expenses 9.9 13.8 0.5
 Net profit -41.0 17.9 -11.9
 PAT margin (%) 2.0 2.2 3.9
 Assets 10.9 9.5 9.2
 Net worth 7.4 8.6 4.8
 RONW (%) 3.4 4.0 5.7
 Count of Cos. 29,264 28,548 9,649
Non-financial Companies
 Income 8.6 14.1 -2.6
 Expenses 8.8 14.3 -1.8
 Net profit -9.5 22.0 -23.7
 PAT margin (%) 2.7 3.0 4.1
 Net fixed assets 7.2 5.4 13.0
 Net worth 6.1 8.3 2.1
 RONW (%) 5.6 6.7 7.2
 Debt / Equity (times) 1.0 1.0 0.8
 Interest cover (times) 2.1 2.3 2.6
 Net working capital cycle (days) 77 70 60
 Count of Cos. 23,680 23,061 7,171
Numbers are net of P&E
Updated on: 14 Jan 2021 10:28AM