Connect with us

Hi, what are you looking for?

[t4b-ticker]
Home » Business » Indian GDP expected To Grow 7.8% in Q2, 9.4% in FY22: Report

Business

Indian GDP expected To Grow 7.8% in Q2, 9.4% in FY22: Report

In FY21, the GDP had contracted 7.3 per cent due to the pandemic, however the recent decline in daily cases has improved the business sentiments across the country.

India GDP Growth -PTI
Representational Image. (Source: PTI)

Mumbai: The Real GDP of India will grow 9.4 per cent in FY22 and decelerate to 7.5 per cent for FY23 as the base effects result in the higher growth in the ongoing fiscal wear-off, the report by economists at HDFC Bank released on Wednesday said.

Th report added that the official data print on the GDP will show a 7.8 per cent expansion on a year-on-year basis for the September 2021 quarter.

READ ALSO: Government To Introduce Bill To Amend Banking Law, Privatise 2 Public Sector Banks

In FY21, the GDP had contracted 7.3 per cent due to the pandemic. For FY22, the RBI expects GDP to clock a growth of 9.5 per cent, which will slow to 7.8 per cent in FY23. The GDP had expanded by over 20 per cent for the first quarter on the lower base. The official data for the second quarter is set to be released on November 30.

The report by HDFC Bank said some part of the expected 7.8 per cent GDP growth in the second quarter will be due to a low base from a year when the economy contracted by 7.4 per cent but there is likely to be a sequential improvement in GDP growth in Q2FY22. On a sequential basis, GDP is expected to grow 9.75 per cent in Q2 from a contraction of 16.9 per cent in the second wave-hit previous quarter, reflecting a revival in economic activity.

“With support from pent-up demand and easing of mobility restrictions in the country, economic activity (as captured by a number of high frequency indicators) moved above pre-second wave levels in early August and has remained robust since then,” the report said.

ALSO READ: Covid-19 India Update: 9,283 New Infections, Active Caseload Lowest In 537 Days

Agriculture, forestry and fishing growth will come at four per cent in Q2FY22, industry will be at 6.3 per cent and services at 8.6 per cent, it added.

When looked at from a gross value added (GVA) basis, the September 2021 quarter growth will come at 7.3 per cent, the bank estimated, explaining that the gap between GDP and GVA is likely to be driven by higher tax revenue collection and lower subsidy pay-outs in this quarter.

The data is in line with an SBI report released a day before on Tuesday, where SBI Research upgraded India’s GDP growth projection for financial year 2022 to the range of 9.3-9.6 per cent from its earlier estimates of 8.5-9 per cent. Both the revised GDP estimates are in-line with RBI’s projection of 9.5 per cent GDP growth for the current fiscal year.

Advertisement. Scroll to continue reading.

The projection comes as the country recorded only 11 per cent increase in COVID-19 cases during the July-September quarter of 2021, second-lowest among the top 15 most affected countries.

Read Full Article

Spotlight

Covid-19

While health officials of both cities claim that hospitalisations have largely remained low, what’s also important to see is the fall in the number...

Videos

The couple’s friends and family from across the globe will also be a part of the event, and will be able to enter the...

Politics

The Congress in Punjab is yet to decide on who will be its face in the Assembly elections. Chief Minister Charanjit Singh Channi and...

Sports

Lakshya Sen from Almora won against Singaporean world champion Loh Kean Yew in a thrilling final 24-22, 21-17. He became the first Indian to...

India

Due to COVID-19 restrictions, the number of visitors to be substantially curtailed this year. We are looking at a range of 5000 to 8000...

You May Also Like

Politics

A Lok Sabha MP since 2014, Mann is a popular face in Punjab and is one of the indisputable comedy kings. Mann has also...

Videos

Dhanush in his shared statement, apart from revealing the shocking news also asked people to respect their decision and give them the needed privacy...

India

Congress has yet now not officially announced the chief ministerial candidate and has maintained that it will contest the polls under a "joint leadership".

India

Bhagwant Mann has stood by the party, despite occasional tussles, which are not uncommon to any political party, through its eventful journey in the...

Advertisement