Mumbai, Dec 2 () The Indian corporate sector, which gradually returned to normalcy from the second quarter of the current fiscal, is likely to sustain improvement in the third quarter, aided by strong festive demand, says a report. During the second quarter, sequential recovery from Q1 FY21 levels was visible across sectors as the lockdown restrictions eased. Some sectors were even able to bounce back to pre-COVID levels and post revenue growth on an annual basis, Icra Ratings said in the report. “On the demand side, we expect that India Inc would gradually revert to normalcy and would be able to sustain improvements in Q3 FY2021, given the seasonally strong festive season,” the rating agency’s Vice President (corporate sector ratings) Shamsher Dewan said. Rural demand continues to be on a positive trend, supported by the normal monsoon, healthy crop outputs, and government support in the form of increased MNREGA allocations, MSME guarantee loans, among others, he said. The recovery is expected to continue to be rural-led, while urban India would gradually catch up. “Nevertheless, the sustainability of the recovery, post the ongoing festive season, would remain critical in determining the overall macroeconomic recovery trajectory,” Dewan said. However, he added that… Read full this story
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