Indian economy continues to be weak: BofA
by Nidhi Bhati
The BofA India Activity Indicator fell by (-) 0.6 per cent in November on top of a (-) 0.8 per cent drop in October and (-) 4.6 per cent contraction in the September quarter, indicating that the Indian economy continues to be weak In view of this, BofA Securities has projected GVA contraction of one per cent for the December 2020 quarter and 6.7 per cent contraction for the full fiscal. On the credit growth front, the brokerage said that the rise in banking system advances seems to have bottomed out and the system will close with a growth of 6.2 per cent in 2020-21. On the positive side, it said credit demand is bottoming out and the real lending rates adjusted for wholesale price inflation are falling.
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