Foreign brokerage Goldman Sachs on Tuesday upgraded its India GDP forecast to a contraction of 10.3 per cent in FY21, as against its earlier estimate of a negative growth of 14.8 per cent.

The US-based firm said developments on the vaccine front — where two candidates have posted satisfactory progress — will be very helpful in the recovery.

The Reserve Bank expects India's GDP to contract by 9.5 per cent on real basis in the ongoing fiscal because of the impact suffered by the economy during the COVID-19 pandemic.

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The GDP will stage an impressive recovery in FY22, with a growth of 13 per cent on the low base and benefits of the vaccine, Goldman Sachs said in a report.

"There is still a high degree of uncertainty around the outlook - and growth could significantly overshoot or undershoot these forecasts - depending on the course taken by the virus and vaccine-related developments in the coming year," it said.

It expects a normalisation in the containment policies and mobility restrictions only in mid-2022, once a vaccine is deployed.

A meaningful rebound in economic activity will happen from 2021 itself, it said, adding that consumer-facing services sectors will stage a faster recovery.

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However, the pace of the rebound will be restrained by some "economic scarring", and a number of factors like a weak labour market, the hit to private sector incomes and balance sheets, tighter credit supply conditions and a limited impetus from fiscal policy, it said.

Headline inflation is likely to decline towards the mid-point of the RBI''s target band of 2-6 per cent by mid-2021 as food prices fall on easing supply restrictions, a benign monsoon and favourable base effects, it said.

Core inflation could also moderate given low manufacturing capacity utilisation and appreciation in the rupee.

This will result in the RB's Monetary Policy Committee (MPC) cutting rates by 0.35 per cent next year, it said, adding that the panel with three new members has a dovish tilt.

The brokerage further said it will be overweight on Indian equities on the macro recovery and relatively higher sensitivity of Indian stocks to positive vaccine outcomes and added that appreciation pressures on the rupee will persist.

Foreign brokerage Goldman Sachs on Tuesday upgraded its India GDP forecast to a contraction of 10.3 per cent in FY21, as against its earlier estimate of a negative growth of 14.

Foreign brokerage Goldman Sachs on Tuesday upgraded its India GDP forecast to a contraction of 10.3 per cent in FY21, as against its earlier estimate of a negative growth of 14.8 per cent. The US-based firm said developments on the vaccine front — where two candidates have posted satisfactory progress — will be very helpful in the recovery. The Reserve Bank expects India's GDP to contract by 9.5 per cent on real basis in the ongoing fiscal because of the impact suffered by the economy during the COVID-19 pandemic. Also read| Coronavirus mutations appearing in Siberia: Russian scientists The GDP will stage an impressive recovery in FY22, with a growth of 13 per cent on the low base and benefits of the vaccine, Goldman Sachs said in a report. "There is still a high degree of uncertainty around the outlook - and growth could significantly overshoot or undershoot these forecasts - depending on the course taken by the virus and vaccine-related developments in the coming year," it said. It expects a normalisation in the containment policies and mobility restrictions only in mid-2022, once a vaccine is deployed. A meaningful rebound in economic activity will happen from 2021 itself, it said, adding that consumer-facing services sectors will stage a faster recovery. Also read| Chemicals found in daily-use products could decrease COVID-19 vaccine's effectiveness: Reports However, the pace of the rebound will be restrained by some "economic scarring", and a number of factors like a weak labour market, the hit to private sector incomes and balance sheets, tighter credit supply conditions and a limited impetus from fiscal policy, it said. Headline inflation is likely to decline towards the mid-point of the RBI''s target band of 2-6 per cent by mid-2021 as food prices fall on easing supply restrictions, a benign monsoon and favourable base effects, it said. Core inflation could also moderate given low manufacturing capacity utilisation and appreciation in the rupee. This will result in the RB's Monetary Policy Committee (MPC) cutting rates by 0.35 per cent next year, it said, adding that the panel with three new members has a dovish tilt. The brokerage further said it will be overweight on Indian equities on the macro recovery and relatively higher sensitivity of Indian stocks to positive vaccine outcomes and added that appreciation pressures on the rupee will persist.

Goldman Sachs ups India's eco forecast on vaccine progress, now expects 10.8 pc contraction in FY21

The US House Committee on Wednesday made to order an amendment which will further enhance defence cooperation with India.

"Reflecting the bi-partisan support in US Congress to strengthen the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/india-news/india-us-trade-talks-to-be-held-on-july-12-in-new-delhi-234691&amp;sa=U&amp;ved=2ahUKEwioyaqzz6zjAhVqILcAHYrhDfsQFjAFegQIBhAC&amp;usg=AOvVaw1ItLHL2SZ8dxhTfY6rcdJg">India-US</a> defence partnership, the House Rules Committee today made to order the bi-partisan Sherman amendment that seeks to promote bilateral defence cooperation by exploring additional steps to implement the major defence partner designation including through appropriate technology transfers," Capitol Hill source told ANI.

The amendment received the support from both Republican and Democrats members including Congressmen Brad Sherman, Joe Wilson, George Holding, Ami Bera, Raja Krishnamoorthi.&nbsp;

The Foreign Affairs and Armed Services Committee also supported the amendment. The Sherman amendment is a part of the House's version of the National Defense Authorization Act (NDAA) FY 2020.&nbsp;

The bill is currently under passage on the House Floor. As an understanding has already been reached on the bill and the selected amendments, it is in the process of being passed by a simple voice vote.

Notably, more than 680 amendments were submitted, this was among the very few that talked of strengthening defence relations with another country that was made to order by the Rules Committee.

Another amendment pertaining to India that was made to order is by Congressman Ami Bera (D-CA) which is a reporting requirement for enhancing defence and security cooperation with India in the western Indian Ocean.&nbsp;

The US House Committee on Wednesday made to order an amendment which will further enhance defence cooperation with India. "Reflecting the bi-partisan support in US Congress to strengthen the India-US defence partnership, the House Rules Committee today made to order the bi-partisan Sherman amendment that seeks to promote bilateral defence cooperation by exploring additional steps to implement the major defence partner designation including through appropriate technology transfers," Capitol Hill source told ANI.

The US House Committee on Wednesday made to order an amendment which will further enhance defence cooperation with India. "Reflecting the bi-partisan support in US Congress to strengthen the India-US defence partnership, the House Rules Committee today made to order the bi-partisan Sherman amendment that seeks to promote bilateral defence cooperation by exploring additional steps to implement the major defence partner designation including through appropriate technology transfers," Capitol Hill source told ANI. The amendment received the support from both Republican and Democrats members including Congressmen Brad Sherman, Joe Wilson, George Holding, Ami Bera, Raja Krishnamoorthi. The Foreign Affairs and Armed Services Committee also supported the amendment. The Sherman amendment is a part of the House's version of the National Defense Authorization Act (NDAA) FY 2020. The bill is currently under passage on the House Floor. As an understanding has already been reached on the bill and the selected amendments, it is in the process of being passed by a simple voice vote. Notably, more than 680 amendments were submitted, this was among the very few that talked of strengthening defence relations with another country that was made to order by the Rules Committee. Another amendment pertaining to India that was made to order is by Congressman Ami Bera (D-CA) which is a reporting requirement for enhancing defence and security cooperation with India in the western Indian Ocean.

United States House to vote for further enhancing India-US defence cooperation

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Goldman Sachs ups India's eco forecast on vaccine progress, now expects 10.8 pc contraction in FY21

United States House to vote for further enhancing India-US defence cooperation