Home / Knowledge / News / Textiles / Indian economy to rebound after COVID-19: IHS Markit

Indian economy to rebound after COVID-19: IHS Markit

Jul '20
Pic: Shutterstock
Pic: Shutterstock
The Indian economy is likely to rebound in the second half of this year as the impact of the novel coronavirus pandemic recedes, and is projected to grow by 6.7 per cent in the next fiscal, according to IHS Markit, whose survey recently showed economic momentum improved in June, reflecting the easing of Covid-19 related restrictions during May and June.

"The severe negative impact is expected to result in a significant contraction in GDP in the April-June quarter of 2020, resulting in a recession in the 2020-21 financial year with GDP expected to contract by 6.3 per cent year-on-year," it said in its outlook on the Indian economy.

The IHS Markit Purchasing Managers' surveys for India showed that despite the negative short-term shocks from the pandemic, total foreign direct investment (FDI) into India has remained buoyant. FDI by technology firms in the first seven months of 2020 has already reached around $17 billion, boosted by the $10 billion new investment announced by Google in mid-July.

"IHS Markit forecast that the Indian economy will rebound as the impact of the pandemic recedes, with improving economic growth momentum in the second half of 2020 and positive GDP growth of 6.7 per cent in the 2021-22 financial year," said Rajiv Biswas, Asia Pacific Chief Economist at IHS Markit.

Facebook, Amazon, and Foxconn are among the other global technology firms that have committed large new investments into India this year, the company said.

"A major boost to investor confidence in the Indian medium-term economic outlook has come from new foreign direct investment into India announced during 2020 by US technology companies like Google, Facebook, and Amazon," Biswas was quoted as saying by a news agency.

IHS Markit said the medium-term economic outlook for India remains favourable, supported by a number of key growth drivers.

"An important positive factor for India is its large and fast-growing middle class, which is helping to drive consumer spending. Total Indian consumer spending is forecast to grow by 42 per cent between 2020 and 2025, measured in USD terms at constant prices," it said.

IHS Markit forecast India's consumption expenditure to double from $1.6 trillion in 2020 to $3.2 trillion by 2030, measured in constant prices, boosted by strong average annual GDP growth and rapidly rising per capita incomes for the country's fast-growing middle-class urban households.

"The digital transformation of India that is currently underway is expected to accelerate the growth of e-commerce, changing the retail consumer market landscape over the next decade. This is attracting leading global multinationals in technology and e-commerce to the Indian market," Biswas said.

Fibre2Fashion News Desk (DS)

Must ReadView All

Pic: Shutterstock

Textiles | On 16th Jun 2021

EU, US agree to end 17-year dispute over aircraft subsidies

The EU and the US have agreed to end a 17-year dispute over aircraft...

Pic: Shutterstock

Textiles | On 16th Jun 2021

UK GDP grows 2.3% in April 2021; fastest since July 2020

As government restrictions affecting economic activity continued to...

Pic: Shutterstock

Textiles | On 16th Jun 2021

Prime Content| Global fabric trade to recover moderately in 2021: TexPro

Global fabric exports are expected to recover moderately in 2021 as...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Next level is to inject new features:

Textile Industry, Head honchos

Textile Industry
Head honchos

Wearables have very limited reach

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry craft and utility

Erwin Devloo,

Erwin Devloo

The Picanol Group is a diversified industrial group active worldwide in...

Alberto Gotti,

Alberto Gotti

Danitech was born from the will of a group of technicians to offer the...

Harleen Kaur,

Harleen Kaur

Established in 2017 and headquartered New York, the label Harleen Kaur...

Madison Maxey, Loomia

Madison Maxey

Loomia designs and manufactures soft circuit systems that can be produced...

Frank Heislitz, Freudenberg

Frank Heislitz

Freudenberg Performance Materials is a leading global manufacturer of...

Dave Rousse, INDA

Dave Rousse

INDA, a global association of the nonwoven fabrics industry, has been...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

Shalini Sharma & Shweta Pundir Sharma, Six Yard Story

Shalini Sharma & Shweta Pundir Sharma
Six Yard Story

Six Yard Story is a premium artisanal brand with a focus to bring handloom ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search