Care Ratings revises India's GDP growth forecast to 10.2 pc for FY22
With economic activities getting affected across the country because of curbs imposed by states amid a surge in Covid-19 cases, Care Ratings has revised down its forecast for GDP growth to 10.2 per cent in 2021-22 from earlier projection of 10.7-10.9 per cent.
This is the third revision by the rating agency in the last one month.
“We have revised our forecast for GDP growth for 2021-22 as the underlying conditions have changed rapidly in the last 30 days or so. It stands now at 10.2 per cent,” Care Ratings said in a report.
On March 24, 2021, the agency had projected GDP growth between 11-11.2 per cent based on GVA (gross value added) growth of 10.2 per cent.
The spread of the virus in Maharashtra had led to the announcement of a “lockdown” by the state government which began in a less stringent manner from the first week of April, it said.
Factoring the potential loss of economic output due to the restrictions in the state, the agency, on April 5, lowered its GDP forecast for the current fiscal year to 10.7-10.9 per cent.
But the “lockdown” was made more obtrusive to business activity by April 20, with more stringency expected for the forthcoming fortnight, it added. Further, the spread of the virus to other states has caused similar actions by governments which have ranged from night curfews and weekend lockdowns to full lockdowns.