India’s GDP growth to rebound to 11% in FY22: Crisil

New Delhi, March 9 : India’s gross domestic product (GDP) growth is expected to rebound to 11 per cent in fiscal 2022, after an estimated 8 per cent contraction this fiscal, ratings agency Crisil said.
Accordingly, the agency cited four drivers to attain such a growth — “people learning to live with the new normal, flattening of the Covid-19 affliction curve, rollout of vaccinations, and investment-focused government spending”.
However, as in this fiscal, the pace of growth will differ in the first and second halves next fiscal, it said.
“While the first half next fiscal will benefit optically because of low-base effect, the second half would see a more broad-based pick-up in economic activity owing to a commodity price lift, large-scale vaccinations and likely stronger global growth,” the agency said.
“But recovery won’t be easy, with scars of the pandemic deep for small businesses and the urban poor; the rural economy has been more resilient versus urban, and services are lagging manufacturing in recovery.” Besides, it said that trade has also normalised faster than the rest of the economy, with both exports and imports scaling pre-pandemic levels.