You are here: Home » Economy & Policy » News
Business Standard

India's GDP to bounce back to 10.4% growth in FY22, says India Ratings

The YoY recovery in FY22 will be V-shaped, but the size of GDP will barely surpass the level attained in FY20

Topics
India GDP growth | India Ratings | Indian Economy

Nikunj Ohri  |  New Delhi 

gdp, growth, forecast, profit, economy, bank
The private final consumption expenditure is expected to grow 11.2 per cent in FY22

and Research (Ind-Ra) estimates India’s gross domestic product (GDP) to bounce back to 10.4 per cent growth in FY22 driven by base effect, signalling that a meaningful recovery will not happen before FY23.

The rating agency expects GDP growth to turn positive at 0.3 per cent in the January-March quarter of FY21 after shrinking in first nine months of the year.

The YoY recovery in FY22 will be V-shaped, but the size of GDP will barely surpass the level attained in FY20 and will be 10.6 per cent lower than the trend value, the agency said.

“FY22 will be covering the lost ground of FY21,” said Sunil Kumar Sinha, principal economist at Ind-Ra.

“FY20 was a year of slowdown and FY21 was a year of lockdown for India. The worst is behind us with respect to Covid-19. However, till mass vaccination and herd immunity becomes reality, lingering impact on the economy would continue,” Sinha said.

The impact of the lockdown on the economy, although subsiding, will continue to delay the normalisation of economic activities in the contact-intensive sectors, the agency said in its note.

Ind-Ra expects the government’s final consumption expenditure to grow 10.1 per cent YoY in FY22 as the Union Budget has set aside fiscal conservatism to provide the much-needed support to the demand side of the economy.

The private final consumption expenditure is expected to grow 11.2 per cent in FY22.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, February 10 2021. 23:58 IST
RECOMMENDED FOR YOU