ICRA revises India's Q2FY22 GDP growth to 7.9%

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SME Times News Bureau | 19 Nov, 2021
Rating agency ICRA has revised India's gross domestic product (GDP) for Q2 FY22 upward by 20 basis points to 7.9 per cent.

Gross Value Added (GVA) for the quarter is expected to rise by 20 basis points to 7.4 per cent, the agency said in a report.

ICRA attributed the Centre's renewed spending in the economy as the cause for this upward revision.

According to Aditi Nayar, Chief Economist at ICRA: "Economic activity in Q2 FY22 was supported by a pick-up in industrial and service sector volumes after the second wave of Covid-19 subsided and rising vaccine coverage revived confidence.

"Additionally, healthy Central and state government spending, robust merchandise exports and continuing demand from the farm sector supported economic activity in that quarter."

An indication of a robust trend in the production of major Kharif crops also seemed to have supported the growth, the report added.

The report cited that revenue expenditure for 22 states such as Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Himachal Pradesh, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Mizoram, Nagaland, Odisha, Punjab, Rajasthan, Sikkim, Tamil Nadu, Telangana, Tripura, Uttarakhand and Uttar Pradesh expanded by 13.1 per cent in Q2FY22, as compared to 1 0.6 per cent in Q1FY22.

The official GDP number for Q2FY22 is slated to be relased on November 30.