By BW CFO World Online Bureau
India is most likely to show double-digit growth because of consumer spending and the expectations of the low base effect of negative growth in the previous year.
India’s GDP had grown by 1.6 per cent in the fourth quarter of the previous fiscal year. The period of April-June had less strict lockdown norms than the same period of 2020. There were partial lockdowns and they were regional in nature. Besides, steady growth in exports as well as a robust performance of agriculture sector.
ICRA’s chief economist said that, “We expect GDP growth at a deceptively high 20 per cent in Q1FY22 boosted by abnormally low base of last year’s nationwide lockdown.” Meanwhile, India Ratings and Research (IND-RA) estimates the aggregate fiscal deficit of states to be about 4.1 per cent of the GDP
Significant economic recovery is expected from the performance of the corporate sector during the financial year 2021-22. Based on poll results, 79 per cent of CEOs voted that the GDP growth will be more than 8 per cent.
According to SBI, India’s economy will likely have grown by 18.5 per cent in the first quarter of FY22 attributing to the high expansion to the base effect of negative growth in the same quarter last year.
Total FDI inflow rose to $22.53 billion during the first quarter of FY22 as against $11.84 billion in the same period last year, the commerce and industry ministry said in a statement. Total FDI comprises equity inflows, reinvested earnings and other capital.
With the easing of COVID-19-related restrictions by the states, the roots of the economic recovery deepened in July 2021, says a report. The unlocking in the country has manifested itself in improving performance across various high-frequency industrial and service sector indicators, mobility, and toll collections in July 2021, according to a report by ICRA ratings.
India’s outbound shipments rose 49.85 per cent on-year to a record $35.43 billion in July, aided by growth in exports of petroleum products and gems and jewellery.
Heavy Industries Minister Mahendra Nath Pandey urged the domestic industry to work in the direction of increasing the manufacturing sector’s share in the country’s GDP. Share of manufacturing in GDP should be increased to 20-25 per cent, he said at an Assocham webinar. The manufacturing sector’s share in India’s GDP is estimated at around 17 per cent currently