|
|
|
FY22 GDP growth pegged at 10-10.5%
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 09 Nov, 2021
India's FY22 GDP is expected to grow at 10-10.5 per cent on a year-on-year basis, Brickwork Ratings said.
According
to the ratings agency, Q2FY22 GDP is expected to grow at 8.3 per cent
year-on-year on the back of a faster-than-expected revival in economic
activities as well as a decline in new Covid cases, leading to sustained
improvement in growth prospects.
"Most states have already
relaxed restrictions on economic activities; with the progress achieved
in vaccinating a sizeable proportion of the population, economic
activities are likely to gather momentum," the agency said in a
statement.
"The pandemic toll on the economy has been huge, and
contact-intensive sectors and supply disruptions may take some more time
to fully recover. The economy is slowly and gradually getting back to
normalcy, and this is evident from the recent revival in production
activities and consumption demand," it added.
The agency said
that the resilience in withstanding the restrictions imposed due to the
second wave of the pandemic is evident in contact-intensive sectors such
as trade, hotels and transport.
"Although the second wave has
adversely impacted the construction sector, disruption in the sector
seems to be much less than that witnessed last year. After having
witnessed sequential decline in Q1FY22, reflecting a demand slowdown due
to lockdowns, industrial activities have shown significant growth
recently," it said.
Amid the waning possibility of a third Covid
wave, the agency expects the economy to register better growth in the
remaining part of the year.
"The downside risks of a possible
third wave to growth too are limited due to the progress achieved in
vaccination. Most importantly, downside risks emanating from rising
international crude oil prices, mineral products, steadily increasing
costs of raw materials and freight rates, disruptions in semi-conductor
supply and coal supply shortages are likely to downplay the growth
momentum," Brickwork Ratings said.
In addition, the agency cited
that after remaining cautious in increasing its expenditures, the
government is also confident of being able to contain the fiscal deficit
at the budgeted level, aided by buyout revenues.
"The capital
expenditure has been increased in the recent months, which will pave the
way for accelerating growth. Pent-up demand during the festival season
is likely to improve demand conditions further, paving the way for
improved capacity utilisation during the third and fourth quarters," it
said.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|