India’s gross domestic product (GDP) is expected to grow by 9.8 percent in 2022. This growth rate is lower than previously predicted. Earlier, the country’s GDP growth was estimated at 10.1 percent. India-based research firm India Ratings and Research (Indira) has given a new forecast for Indian GDP. The agency said that the growth rate was earlier estimated at 10.1 percent, but it is no longer happening due to the Covid hyperbole.
Mumbai-based research firm India Ratings and Research (Indira) has given a new forecast for Indian GDP. The agency said that the growth rate was earlier estimated at 10.1 percent, but it is no longer happening due to the Covid hyperbole.
Indira’s new forecast also mentions ‘if only’ for GDP growth. For example, if we can ensure that all adults in the country are vaccinated against corona by December 31, 2021, it will be possible to achieve a growth rate of 9.8 percent.
In India, an average of 3.2 million people have been vaccinated against corona every day from June 1 to 20. However, this number has increased to 6 lakh 30 thousand on June 21. If the continuous vaccination program can be continued in this way, India will meet the target of achieving GDP growth as per the new forecast.
“If the vaccination program is not implemented as per the current targets or the program is delayed for three months due to shortage of supplies, the country’s GDP growth will fall further to 9.1 per cent in 2022,” she said.
Indra has forecast 10.4 per cent growth in aviation, tourism, hotels and restaurants, sports, entertainment, hospitality and other sectors that are still reeling under the effects of the corona.
Indra also spoke about the consumption trend in the Indian economy. They said that even before the launch of Covid-19, the consumption trend among the people was declining. According to the agency, India’s Parent, Family and Community Engagement (PFCE) index was negative at 26.2 percent in the first quarter of FY2021. However, the company expects the index to drop to 10.8 percent in 2022.
In 2022, 3 percent growth will be achieved in the agricultural sector. At the same time, the growth in the industrial sector may be 10.9 percent.
This is the third consecutive year that India’s agricultural sector has seen an increase in production. Following this, 3 percent growth will be achieved in the agricultural sector in 2022. At the same time, the growth in the industrial sector may be 10.9 percent. Apart from this, Indira Gandhi has forecast 10.4 percent growth in the sectors like aviation, tourism, hotel-restaurant, sports, entertainment, hospitality or hospitality which are still suffering due to the impact of Corona.
The Indian economy is likely to grow by 9.6 per cent in the current fiscal year 2021-22, according to credit rating agency India Ratings and Research (Ind-Ra). The company trimmed its projection of the gross domestic product (GDP) growth for the current fiscal from 10.1 per cent to 9.6 per cent, due to the scale of the second wave of the deadly COVID-19 pandemic in the country. (Also Read: Economy May Have Shrunk 12% In June Quarter Due To Covid Second Wave: Report )
During the previous financial year 2020-21, which witnessed the first wave of COVID-19 and the onset of the second, the economy contracted by 7.3 per cent, recording its worst-ever performance in more than four decades.
In the first quarter of the previous fiscal, the GDP contracted by a massive 23.9 per cent, and at 7.5 in the second quarter – resulting in the economy slipping into a technical recession. In the subsequent third and fourth quarters, the economy staged a V-shaped recovery, due to the gradual easing of lockdown restrictions.
The Fitch group company now projects the GDP growth to come in at 9.6 per cent in the current financial year, however, it added that it is contingent upon India vaccinating its entire adult population by December 31, 2021.