SBI Downgrades India’s Economic Growth Forecast for FY22 to 7.9%
As the second wave of Covid-19 and the resulting restrictions cripple economic activity once again, the State Bank of India (SBI) has downgraded India’s growth outlook for the current exercise.
The latest SBI Ecowrap report forecast India’s GDP growth of 7.9 percent, down from its previous projection of 10.4 percent growth.
However, he added: “We are biasing this number upward with the fervent hope of 1 crore in vaccinations per day from mid-July according to government forecasts.”
He also noted that there would likely be a “disproportionately larger” impact on the economy this time around and given that rural is not as resilient as urban, it is unlikely that demand recovery. repressed would make a big difference in FY22 GDP estimates, so it could only have been a modest recovery.
On Monday, India reported a 7.3 percent contraction in its economy.
SBI Ecowrap noted that real GDP for FY21 in the provisional estimates has been revised upwards to Rs 135.13 lakh crore from Rs 134.09 lakh crore according to the second advance estimates.
Thus, for fiscal year 21, real GDP growth was recorded at -7.3 percent against the previous SBI estimate of -8.0 percent.
“The positive growth rate in the fourth quarter of FY21, which was to be negative in the second expected estimate, helped stop the decline in GDP,” he said.
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