The report said that less than 8% decline was attributed to a higher PCI decline of about 10–12% in relatively rich states such as Uttar Pradesh and Bihar, as compared to less than 8%.
According to the report, post-crisis PCI conditions take longer to recover to normal levels than on average four years to reach pre-crisis gross domestic product (GDP) levels.
The PCI of an economy is an important metric because it indicates the standard of living and the state of development of a country.
It is used by most global institutions and rating agencies in their forecasts. Almost all global rating agencies cite India’s low PCI as pulling its sovereign credit profile down.
SBI Research estimates in the national capital that the highest decline has been around three times the national average of -15.4%, followed by Chandigarh at -13.9%.
The report said that PCIs could see double-digit declines in this fiscal year for a total of eight states and union territories (UTs), all the more alarming since making up for 47% of the country’s GDP. .
SBI research has stated that India’s FY21 growth rate is -6.8%, stating that it will not see pre-Kovid levels of growth before FY24.
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