BS BFSI Summit: Economic recovery is on but risks lie ahead, say economists

There is still uncertainty around domestic demand, capital expenditure by state governments, non-performing assets of the banking sector, and supply-side constraints

Economists are in concurrence that the economy is getting its strength back after the second wave of the Covid-19 pandemic, but there is still uncertainty around domestic demand, capital expenditure (capex) by state governments, non-performing assets (NPAs) of the banking sector, and supply-side constraints.

At Business Standard's BFSI summit, Sonal Varma, Nomura's chief economist for India and Asia ex-Japan, said, "It is very clear that India is in the midst of the business-cycle recovery."

However, she cautioned that this has been a very uneven recovery and the real gross domestic product is still 10 per cent down, compared to