HomeBusinessIndia's Economic Growth Projection For 2021-22 At 9.1%: Survey

India’s Economic Growth Projection For 2021-22 At 9.1%: Survey

India's Economic Growth Projection For 2021-22 At 9.1%: Survey

FICCI survey drew responses of economists from trade, banking and monetary providers sector.

New Delhi: The Indian economic system is predicted to develop at 9.1 % within the monetary 12 months 2021-22 (FY22), trade physique FICCI’s newest Economic Outlook Survey talked about on Thursday. The gross home product (GDP) projection marks a marginal enchancment from the expansion forecast of 9% recorded in its earlier survey in July.

“Economic recovery, post the second wave of the Covid-19 pandemic, seems to be holding ground and the same is also reflected in the incoming data on various high frequency indicators. The forthcoming festive season should support this momentum,” the Federation of Indian Chambers of Commerce and Industry stated.

Though, it added a observe of warning for the Diwali celebrations and urged to carry “some sense of complacency setting in with regard to the Covid situation” as “the likely surge in people’s movement can again lead to a rise in new coronavirus cases.”

According to the FICCI survey, the median progress forecast for agriculture and allied actions has been put at 3.2% for FY22. Industry and providers sector are projected to develop by 12.9% and eight.6% respectively in the course of the 12 months, the chamber stated.

This survey was carried out in September and drew responses of economists from trade, banking and monetary providers sector.

When requested concerning the Reserve Bank of India’s (RBI’s) upcoming financial coverage assessment, a majority of economists opined that the central financial institution will keep established order on the repo price and can proceed with an accommodative stance. They largely felt that the RBI might point out a change of stance from accommodative to impartial within the February 2022 coverage assembly and a hike in repo price might occur within the subsequent fiscal 12 months.

The present repo price — the speed at which RBI lends cash to industrial financial institution — stands at 4%.

“The second quarter GDP data and the upcoming festive season should give a clearer idea of where we are headed on the recovery path and how the demand situation is panning out. Moreover, we will also get greater clarity on the covid situation, and the possibility of a third wave post the festive season. Until then, the central bank could continue to resort to milder liquidity draining policies,”

India’s economic system grew at 20.1% within the first quarter (Q1), ended June 30 (FY22), as in opposition to contraction of 24.4% within the Q1 FY21. And, the second quarter (Q2 FY22) GDP knowledge is predicted to be launched on November 30.

The survey’s median forecast for CPI primarily based (retail) inflation price stood at 5.6% for 2021-22.

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