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Ratings agency ICRA revised its Indian GDP growth estimate, recently.
On the other hand, Reserve Bank of India (RBI) has forecasted a growth of 9.5% for the full financial year 2021-22.
Why there was an upward trend?
There was an upward trend in Q2 of the current financial year, because the economic activity was supported by a pick-up in industrial and service sector volumes after covid-19 second wave settled down and vaccine coverage increased, furthermore, healthy Central and state Government spending, increasing demand from farm sector and robust merchandise exports also supported economic activity.
Non-interest revenue expenditure of central government expanded by 15 per cent in Q2 of FY22 as against the contraction of 7.3% in Q1 of FY22. Apart from that, revenue expenditure expanded by 13.1% in quarter 2 across 22 states, as compared to 10.6% growth in Q1 of the current financial year.
By: Brijesh Kumar ProfileResourcesReport error
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