Indian economy recovering faster than expected, claims Oxford Economics

New Delhi: – Renowned US Institution, Oxford Economics, has claimed that the Indian economy is returning to normalcy faster than expected. At the same time, reports have been published that foreign investors have made investments of USD 351.09 billion in the first 13 days of November.

There are positive indicators in the Indian economy. Various reports have claimed that the Indian economy is recovering to its normal state, leaving the Coronavirus crisis behind. Recently, Moody’s changed the forecast for Indian growth rate. The Indian government too claimed that the economy had gained speed, like before the Coronavirus crisis, given the increased GST revenue and the fuel demand reaching the pre-Coronavirus levels.

Now, Oxford Economics also has recorded its observations. This institution engaged in forecasts regarding economies on the global level has claimed that the Indian economy is returning to normalcy faster than expected. Oxford Economics has also predicted that the price rise index will again come below 6% in the fourth quarter of the current fiscal.

Therefore, the Reserve Bank of India (RBI) will give up its softness in interest rates. The report also claims that the RBI will not make changes to the interest rates in the credit policy in December. At the same time, Oxford Economics has warned that India will have to be more cautious about the inflation rate.

The Foreign Portfolio Investment (FPI) in the first 13 days of November shows the confidence expressed by the foreign investors in the Indian economy. FPIs invested USD 351.09 billion in the Indian markets between 2nd and 13th November. Out of these, USD 294.36 billion is in shares and USD 56.73 billion is in debt instruments. Last month, the FPIs invested USD 223.3 billion in the Indian share markets.

The reforms implemented by the Indian government, good quarterly results of the companies, have increased the investor confidence. There are positive signs in the Indian markets. As per analysts, this goes to show that the investor confidence in the Indian markets has increased.