According to Brickwork Ratings, growth estimate for the India’s gross domestic product (GDP) to be 10-10.5% in the FY22 from an earlier expectation of a 9% growth.
Various economic growth indicators are proposing a faster-than-expected revival in economic activities, it stated.
“We modify our GDP estimates for FY22 to 10-10.5% from 9% estimated previously,” the credit rating agency disclosed it in the report.
It expects the GDP growth for Q2 FY22 to be at 8.3% (year-on-year), on the back of a 7.4% contraction in Q2FY21. The country’s GDP grew at 20.1% in the first quarter of fiscal 2022.
The agency deems that the subsequent quarters too will see improvement if there is no resurgence of the third wave.
“Amid the weakening possibility of a third wave, we anticipate the economy to put in better growth in the remaining part of the year,” it added.
The drawback risks of a possible third wave to growth too are constrained due to the progress achieved in vaccination, it said.
Though, drawback risks deriving from rising crude oil prices, mineral products, increasing costs of raw materials and freight rates, disruptions in semiconductor supply and coal supply shortages are expected to modulate the growth momentum, the agency stated.
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