Gross domestic product (GDP) growth reduced to 9.6% for this fiscal year, according to Ind-Ra
India’s economy is expected to grow 9.6% in the current fiscal year 2021-2022, according to rating agency India Ratings and Research (Ind-Ra). The company has reduced its projection of gross domestic product (GDP) growth for the current fiscal year from 10.1% to 9.6%, due to the scale of the second wave of the deadly COVID-pandemic. 19 in the country. (Also Lily: Economy may have shrunk 12% in June quarter due to second wave of Covid: report)
In the previous 2020-21 fiscal year, which saw the first wave of COVID-19 and the start of the second, the economy contracted 7.3%, recording its worst performance on record in addition to four decades.
In the first quarter of the previous fiscal year, GDP contracted by 23.9%, and by 7.5% in the second quarter, pushing the economy into a technical recession. In the following third and fourth quarters, the economy saw a V-shaped recovery, due to the gradual easing of foreclosure restrictions.
The Fitch Group company now predicts GDP growth to reach 9.6% in the current fiscal year, but added that it is dependent on India having its entire adult population immunized by now. December 31, 2021.
Average daily vaccinations from June 1 to 20 totaled 32 lakh, which eventually reached 87.3 lakh on June 21, when revised vaccination rules take effect nationwide.
If the vaccination rate is kept close to the level of June 21, the country will then be able to reach the target of 9.6% economic growth. However, if the vaccination target is delayed by three months, either because of the slow vaccination pace or the unavailability of vaccines, GDP growth in the current fiscal year will fall further to 9.1%, according to the report. Ind-Ra.
Additionally, in a report released last week, national brokerage firm Motilal Oswal said real GDP – an indicator of economic activity that takes nominal GDP and adjusts for inflation / deflation, is expected to reach 8.7% in the current financial environment. year, up from 11.1 percent projected earlier.