New Delhi: India’s economy is projected to grow by 9.2% during the current financial year, assisted by a strong agricultural sector and strengthen recovery in the manufacturing, construction and service sectors.
However, economists warn of the possibility of a bad impact of the third wave of Covid-19 in the coming months.
This will be the fastest expansion since 1988-89, when the economy has grown by 9.6% and comes behind a 7.3% contraction during the last financial year when growth has collapsed due to the impact of the Covid-19 pandemic.
This will also be the fastest grow under a new methodology, data available for 17 years.
Data shows that almost all sectors are restrictions ‘trade, hotel, transportation, communication, and services related to broadcasting’ reaching the pre-pandemic level.
The projected growth rate will also help India maintain the fastest growing economy tag.
The economy has recovered after the impact of bruise from strict national locking imposed to prevent the spread of Coronavirus causing a record of 24.4% contraction during April-June 2020.
Nominal GDP growth, including inflation, is estimated at 17.6%, according to 17% face estimation released by the National Statistics Office (NSO) on Friday.
According to SBI research, this is the second highest nominal growth since 19.9% ​​nominal growth in 2010-11 and 17.1% in 2006-07.
The economic size based on current prices in the requirements of the dollar is estimated at $ 3.1 trillion.
The NSO GDP estimate is slightly lower than the Reserve Bank of India (RBI) projection.
The central bank estimates that the economy grows by 9.5% and the International Monetary Fund (IMF) also expects it to expand a similar line.
The government has budgeted a two-digit growth during the current financial year.
But the third wave led by the Omicron variant has thrown a shadow on the growth and strength of recovery.
Some economists have cut their growth estimates for a full year and expect the sidewalk to be imposed by countries to influence business and overall growth.
NSO also warned that the estimated 9.2% GDP growth in the first advanced estimate did not take into account a number of factors and the impact of government measures could cause revisions.
“However, this is the initial projection for 2021-22.
Actual performance of various indicators, actual tax collections and expenses that occur in subsidies in the following months, fresh help steps for vulnerable parts (such as providing free food grains It has now been extended until March 2022) and other steps, if any, which is taken by the government to contain the spread of Covid-19 will experience a disruption to the revision of this next estimate, “NSO said.
The Indian economy has conducted a sharp recovery after the second wave and several indicators have reached their pre-pandemic level assisted by the steps taken by the Government and the RBI.
Full report about www.oi.in