Economists tweak their GDP projections for FY22 due to Lockdown and mobility curbs
Published On: Wednesday, April 28, 2021 | By: Team KnowMyStock
Recent lockdown and mobility curbs in more Indian cities – have led to economists tweak their gross domestic growth (GDP) projections for fiscal 2021-22 (FY22). In a recent note, those at IHS Markit suggest that they expect the Indian economy (as measured by GDP) to grow at 9.6 percent in FY22. Maharashtra’s lockdown, it said, represents a significant dampener on growth, as the state accounts for 16 percent of the national GDP. “IHS Markit forecasts 9.6 percent real GDP growth in FY 2021, though the wider restrictions forecast above indicate that there is scope for further reductions in economic growth, as these measures would mean income and job losses for workers alongside significant output and revenue losses for firms, particularly in the services sector and the informal economy,” wrote Deepa Kumar, deputy head, Asia-Pacific, IHS Markit.
Those at Nomura, too, expect the pain in the economy to grow given the recent measures to curb the pandemic. However, they believe that the overall impact will be muted and be for the short-term as compared to 2020 when all economic activity came to a standstill for a few weeks.
Tags: IHS Markit Nomura Indian economy GDP
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