10-10.5% growth expected in FY22 in India: Brickwork Ratings

10-10.5% growth expected in FY22 in India: Brickwork Ratings




The Indian economy has been recovering well from the devastation caused by the second wave of the COVID-19 pandemic, and most growth indicators are performing better on a year-on-year basis, according to Bengaluru-based Brickwork Ratings, which has revised its gross domestic product (GDP) estimates for fiscal 2021-22 to 10-10.5 per cent from 9 per cent estimated earlier.

The level of GDP in the economy is likely to reach close to pre-COVID levels in the second quarter of fiscal 2021-22, it said.

“We expect GDP growth for Q2FY22 at 8.3 per cent (year-on-year), on the back of a 7.4 per cent contraction in Q2FY21. The subsequent quarters too will see recovery if there is no resurgence of the virus in the form of a third wave,” the rating agency said.

The Indian economy has been recovering well from the devastation caused by the second wave of the COVID-19 pandemic, and most growth indicators are performing better on a year-on-year basis, according to Brickwork Ratings, which has revised its gross domestic product (GDP) estimates for fiscal 2021-22 to 10-10.5 per cent from 9 per cent estimated earlier.

Many economic growth indicators are suggesting a faster-than-expected revival in economic activities, instilling greater confidence in economic agents as the number of new COVID-19 cases declines and leading to a sustained improvement in growth prospects.

Most states have already relaxed restrictions on economic activities; with the progress achieved in vaccinating a sizeable proportion of the population, economic activities are likely to gather momentum.

The pandemic toll on the economy has been huge, and contact-intensive sectors and supply disruptions may take some more time to fully recover. The economy is slowly and gradually getting back to normalcy, and this is evident from the recent revival in production activities and consumption demand.

Despite the disruptions caused by the second wave, the Q1FY22 GDP grew at 20.1 per cent. Amid the waning possibility of a third wave, the rating agency expects the economy to register better growth in the remaining part of the year.

Fibre2Fashion News Desk (DS)





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