Domestic rating agency, Brickwork Ratings in its latest report has revised downwards the country’s FY22 GDP growth projection to 9 per cent from an earlier estimate of 11 per cent. It said that the deadly second wave of COVID-19 has brought an abrupt halt to the country’s nascent economic recovery from the pandemic.
It said ‘the outlook for growth continues to remain positive mainly due to the low base, and we revise FY22 GDP growth to 9 per cent from the earlier estimates of 11 per cent.’ It stated until the virus spreads are contained, and a substantial proportion of the population has been vaccinated, the sectors that are impacted by social distancing norms and those adversely affected by supply disruptions, labour shortage and demand reduction will continue to trail and may take longer to return to sustained growth path.
It mentioned the revival in sectors that fall under discretionary spending may also be further delayed due to the second wave. Besides, it said the Indian economy entered the calendar year 2021 with bright hopes of achieving double-digit growth in FY22 backed by dramatic decline in new COVID infections, in addition to progress in developing an effective vaccine for COVID-19.