The country's GDP figures for the September quarter are expected to be good

Mumbai, Ta. 25 November 2020, Wednesday

The Bank of America expects the September quarter economic growth figures to be better than the June quarter, which will be released later this month. GDP is expected to remain negative at 4 to 5 per cent in the September quarter after remaining negative at 3 per cent in the June quarter.

The September quarter GDP figures are due at the end of the month. The Bank of America also estimates that India will see a current account surplus of one per cent at the end of the current financial year, given the sharp decline in imports.

It has revised its economic growth forecast for the current full fiscal year to 7.50 per cent from 11 per cent earlier.

The Reserve Bank will allow the rupee to depreciate from Rs 5 to Rs 7 against the dollar and will make a net purchase of ૭૭ 3 billion in the current financial year. The Reserve Bank has made a net purchase of 2.50 billion this year.

The Reserve Bank will continue its policy of buying the dollar whenever it weakens and allowing the rupee to depreciate to 6 against the dollar when it strengthens under the new US administration, the Bank of America said in a report.

The new US administration plans to deliver ટ્ર 1 trillion in fiscal stimulus in February.

In the second quarter of the current financial year, India's current account surplus is expected to be 16 billion, up from ૯ 16.50 billion in the first quarter. The country's current account surplus is expected to be one per cent of GDP in the full financial year.