The Economy Wrap: Fiscal deficit, inflation target and contracting core sector

As the curtain comes down on FY'21 a slew of data flooded in as well, here is a quick snapshot of the state of the economy. 

• Core Industries output shrunk at the fastest pace in six months in February as all 8 key sectors saw contraction on year-on-year basis. For April-Feb core sectors contracted 8.3%
• Fiscal deficit for the first 11 months of FY21 has come in below the Govt's revised estimates. At Rs 14.05 lakh crore it is 76% of the of revised estimates.
• April-February, gross tax revenues are 0.7% below the collections seen in the same period in FY'20.
• Inflation target has been maintained in the same band of 2%-6% for the next five years. 

Meanwhile the World Bank has raised India's growth outlook they see FY'22 GDP at 7.5%-12.5% range but hinge it entirely on how fast the vaccination drive is undertaken and the global recovery trend.