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India Ratings Reduced India’s GDP Growth Forecast for FY22 to 10.1% from 10.4%

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On April 23, 2021, India Ratings and Research (Ind-Ra) have reduced India’s GDP growth forecast of FY22 to 10.1 per cent, from its earlier projection of 10.4 per cent.

  • The agency stated that the vaccination efforts for the pandemic will cost 12 per cent of the GDP to the union government and 0.24 per cent to the state governments.
  • It expects retail and wholesale inflation to average 5.0 per cent and 5.9 per cent, respectively, in FY22
  • The demand-side component of GDP of Private final consumption expenditure, Government final consumption expenditure, and Gross fixed capital formation are now expected to grow at 11.8 per cent, 11.0 per cent and 9.2 per cent, respectively, in FY22, as against the earlier forecast of 11.2 per cent, 11.3 per cent and 9.4 per cent.
  • Maharashtra is the economically biggest and the most industrialized state contributing 13.9 per cent to the national GDP.

The revised growth forecast by SBI Research:

On April 23, 2021, SBI Research also reduced India’s growth forecast for FY22 to 10.4 per cent from 11 per cent of the earlier predictions and it forecasted 14.3 per cent of nominal GDP.

S&P Global Ratings Projection:

S&P Global Ratings in its report on Asia-Pacific Financial Institution projected Indian economy growth for FY22 at 11 per cent. It has also projected an additional 6.1 per cent-6.4 per cent forecast increase for the next couple of years.

Recent Related News:

On March 18, 2021, the United Nations Conference on Trade and Development(UNCTAD) released its Trade and Development Report 2020 in which it expected India’s GDP to have contracted 6.9%(-6.9%) in 2020 and grow 5% in 2021.

About India Ratings and Research(Ind-Ra):

It is a 100% owned subsidiary of the Fitch Group.
Headquarters– Mumbai, Maharashtra
MD & CEO– Rohit karan Sawhney