On February 10, 2021 India Ratings and Research (Ind-Ra)Ltd estimated that India’s real Gross Domestic Product(GDP) will bounce back to 10.4% in FY22, primarily based on the base effect. The GDP growth of Q1 to Q3 of FY 21 was negative, the agency expects that the growth will be positive in Q4 at 0.3% .Earlier, Ind-Ra had projected the GDP for FY 21 as -7.8%.
Note– The full recovery will be visible in FY23.
Highlights of the Projection:
Govt & Private Final Consumption Expenditure:
The government final consumption expenditure is expected to grow at 10.1% in FY22, while private final consumption expenditure is expected to grow at 11.2% in FY22
The agricultural Gross Value Added(GVA) to grow at 3.0% in FY22. This estimate is made on the expectation that there will be a normal and well-distributed rainfall in 2021.
Other Projection in FY 22:
Industrial sector- 11.5%
Service sector- 11.4%
Retail Inflation- 4.3%
Wholesale inflation- 2.8%
Recent Related News:
On January 13, 2021, CARE Ratings downgraded its projection of the Centre’s fiscal deficit to 7.8% of GDP (Gross Domestic Product) during FY21 against its earlier estimate of 9-9.5%. As per this the Fiscal deficit is likely to be around Rs 15.3 lakh crores.
About India Ratings and Research(Ind-Ra):
It is a 100% owned subsidiary of the Fitch Group.
HeadQuarters– Mumbai, Maharashtra
CEO & MD– Rohit Karan Sawhney