Ratings agency ICRA has revised its real GDP growth forecast for India on September 27, 2021 for Financial Year 2022 (FY22). Its GDP forecast has changed from 8.5% to 9 per cent.

Highlights

• ICRA credited the upward revision in the GDP to the brightening prospects for second quarter of FY22 which is expected to benefit as a result of rapid Covid-19 vaccine administration, healthy advance estimates of kharif output as well as easing of cash management measures related to the spending of Central government.
• Forecast for the GVA growth in agriculture, forestry & fishing have been revised to 3 per cent (from 2 percent) in Q2 & Q3 of FY2022.

According to ICRA, widening coverage of Covid-19 vaccines will boost confidence, which, in turn, will re-energise the demand for contact-intensive services. It will help in reviving the portions of economy affected most by covid-19 pandemic. As per ICRA’s estimated, nearly three-fourths of Indian adults will receive their second Covid-19 vaccine by the end of 2021.