Even as industrial output picked up as the economy reopened, buoyed by pent-up demand and a festival spending boost, consumer sentiment remains weak. Q4 2020 is projected to be the strongest quarter for EME inflows since Q1 2013 — since just before the taper tantrum. The Indian markets are a big beneficiary — on a year-to-date basis, till December 20, 2020, the S&P BSE Sensex and Nifty50 have surged over 13 per cent per cent and 12 per cent respectively. The trend points to the reluctance of central and state governments to provide a fiscal spending boost to balance the fall in investment demand. * According to the IMF, the economy is likely to contract by 10.3 per cent in the current fiscal, and then grow by 8.8 per cent in 2021-22.

Source: Indian Express December 28, 2020 23:40 UTC