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

25 Mar 2021 CW Staff

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.

Infrastructure Transport

12 Mar 2026

Kavach 4.0 Commissioned on Delhi–Mumbai and Delhi–Howrah

"Kavach version four has been commissioned on 1,452 route km, covering the high density Delhi–Mumbai and Delhi–Howrah corridors. The rollout included laying 8,570 km of optical fibre, installation of 1,100 telecom towers, deployment of trackside equipment over 6,776 RKm and establishment of 767 station data centres. Trackside implementation has been taken up on 24,427 RKm covering Golden Quadrilateral, Golden Diagonal and High Density Network sections. The programme aims to strengthen signalling and train protection on key routes.Kavach is an indigenously developed automatic train protecti..

Railways Advance Kalyan–Murbad Line And Mumbai Capacity Expansion

"Indian Railways is advancing multiple rail infrastructure projects in Maharashtra, including the sanctioned Kalyan–Murbad new line and sizable investments under the Mumbai Urban Transport Project and the Mumbai–Ahmedabad High Speed Rail project. The Kalyan–Murbad 28 km new line has been sanctioned at Rs 8.36 billion (bn) on a 50:50 cost-sharing basis with the Government of Maharashtra and has been declared a Special Railway Project for land acquisition; proposals covering 214 hectares are at various stages of acquisition. Budgetary outlay for projects falling fully or partly in Maharash..

Parliamentary Panel Flags Funding Gaps in Heavy Industries

"The Department-Related Parliamentary Standing Committee on Industry (Rajya Sabha) presented its 332nd report on the Demands for Grants 2026-27 of the Ministry of Heavy Industries (MHI). Figures converted from crore and lakh are expressed in million (mn). The Budget Estimates 2026-27 for the Ministry stand at Rs 79,399 mn against a projected requirement of Rs 94,843.2 mn, a shortfall of about 16 per cent, with revenue at Rs 79,370.8 mn and capital compressed to Rs 28.2 mn from Rs 5,020 mn.The committee flagged recurring BE-to-RE compression and declining revised estimate utilisation, and calle..