FY 2022 GDP expected to grow 11-11.2%: CARE Ratings
ECONOMY & POLICY

FY 2022 GDP expected to grow 11-11.2%: CARE Ratings

GDP growth in FY22 is expected to be high due to two factors:

The first is the low base effect of negative growth in FY21. This is significant because while the base effect provides a boost to the GDP numbers, it is not that impressive when compared with FY20.

The second is due to the recovery which has taken place in the economy following the lockdown that was followed by the unlock process which has opened all sectors.

Recovery is broad-based across sectors but at varying speeds, as the services sector in particular still operates with significant restrictions which look unlikely to be fully eased through the first half of FY22. The recovery in the economy will also be aided by the vaccination drive which has been witnessed in the country and the sustained pace of vaccination and coverage of more age-groups is required to speed up the process.

Although the recent surge in Covid-19 cases in the country has raised the possibility of potential restrictions that are in place in several business centres, they are expected to be less potent than those in FY21.

Based on perspectives of various sectors that CARE Ratings covers separately, the GVA and GDP forecasts presented here are based on their inclusions in these calculations. The forecasts have used the CSO estimate for FY21 which is -8.0% as the base for estimation purposes. CARE Ratings’ forecast for FY21 still stands at -7.8%. However, this exercise uses CSO as the base to be aligned with the official estimate. It is believed that the final forecast may not change very significantly and would vary by not more than 0.2 - 0.3%.

Read the full CARE Ratings report here.

GDP growth in FY22 is expected to be high due to two factors: The first is the low base effect of negative growth in FY21. This is significant because while the base effect provides a boost to the GDP numbers, it is not that impressive when compared with FY20. The second is due to the recovery which has taken place in the economy following the lockdown that was followed by the unlock process which has opened all sectors. Recovery is broad-based across sectors but at varying speeds, as the services sector in particular still operates with significant restrictions which look unlikely to be fully eased through the first half of FY22. The recovery in the economy will also be aided by the vaccination drive which has been witnessed in the country and the sustained pace of vaccination and coverage of more age-groups is required to speed up the process. Although the recent surge in Covid-19 cases in the country has raised the possibility of potential restrictions that are in place in several business centres, they are expected to be less potent than those in FY21. Based on perspectives of various sectors that CARE Ratings covers separately, the GVA and GDP forecasts presented here are based on their inclusions in these calculations. The forecasts have used the CSO estimate for FY21 which is -8.0% as the base for estimation purposes. CARE Ratings’ forecast for FY21 still stands at -7.8%. However, this exercise uses CSO as the base to be aligned with the official estimate. It is believed that the final forecast may not change very significantly and would vary by not more than 0.2 - 0.3%. Read the full CARE Ratings report here.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code