India’s GDP is anticipated to develop at 9.1 per cent in 2021-22 as financial restoration, put up the second wave of the pandemic, appears to be holding floor, Ficci stated on Thursday.
Ficci’s Economic Outlook Survey additionally famous that the continued festive season would help this momentum.
However, the business physique cautioned {that a} seemingly surge in individuals’s motion throughout Diwali can result in an increase within the variety of COVID circumstances once more.
“The latest round of Ficci’s Economic Outlook Survey has put forth an annual median GDP growth forecast for 2021-22 at 9.1 per cent. This marks a marginal improvement from the growth projection of 9 per cent recorded in the previous survey round (July 2021),” the chamber stated.
Pick-up in monsoon rains within the latter a part of the season and subsequent improve in kharif acreage is more likely to maintain progress expectations of the agriculture sector upbeat, it stated.
The survey was performed in September 2021 and drew responses from main economists representing the business, banking and monetary providers sector.
“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,” it stated.
With regard to heading again to the method of normalization, it was largely felt that the Reserve Bank might point out a change of stance from accommodative to impartial within the February 2022 coverage assembly, the survey stated.
“However, a hike in the repo rate only looks imminent in the next fiscal year (April 2022). Also, the path towards positive real interest rates is expected to be a staggered one. Much would be contingent on the build-up in domestic price levels and the extent of tapering by the Federal Reserve,” it stated.
