Skip to main content

CRISIL cuts India's GDP forecast to 9.5% from 11%




CRISIL cuts India's GDP forecast to 9.5% from 11%


Ratings agency CRISIL has lowered India's gross domestic product (GDP) growth forecast to 9.5 per cent for the current fiscal compared to 11 per cent projected earlier. The downward revision reflects the major hit the two engines of growth -- private consumption and investment -- have taken due to the second Covid-19 wave. 

"The second Covid-19 wave has thrown cold water over the Indian economy that was beginning to warm up after the most severe contraction since Independence. The rash of afflictions that followed forced states to lock down, hurting consumer and business confidence yet again," the report titled "Pinpricked growth" said. 

The daily Covid-19 cases seem to have peaked for now, though they remain above the peak of the first wave. India has reported 1,00,636 new COVID-19 cases and 2,427 deaths in the last 24 hours, the health ministry data shows. "The risks of another wave and tardy vaccinations mean states would be chary of fully unlocking anytime soon," the CRISIL report said.

As per the CRISIL economists, Covid-19 restrictions will continue and mobility will remain affected in some form or other, at least till August. They said vaccination will play a huge role in economic recovery. "The pace of economic recovery will also be a function of what the pace of vaccination is in the coming months," the report said. 

The government plans to vaccinate India's entire adult population -- about 68 per cent of the total population -- by December. CRISIL terms it a "tall order even if there are sufficient vaccines available".

Medical scientists have projected that India could be hit by the third Covid-19 wave but its timing can't be anticipated. "A third wave would pose a significant downside risk to the growth forecast, as would a slower-than-anticipated pace of vaccination," the report said, adding that in such a scenario, the GDP growth could be around 8 per cent. 

Like CRISIL, the Reserve Bank of India (RBI) has also revised its real GDP projection from 10.5 per cent to 9.5 per cent in 2021-22 amid the second wave of  Covid-19 and localised lockdowns. 

India's economy grew at 1.6 per cent in the fourth quarter of 2021-21, recording a slight pickup in GDP growth amid the Covid-19 second wave hitting the economy hard. In the full fiscal year, the economy shrunk by -7.3 per cent as the Covid-19 pandemic ravaged the economy. The contraction in FY21 GDP is worse in more than 40 years, the government data shows.

Comments

Popular posts from this blog

World Biofuel Day, 2021

                         World Biofuel Day, 2021                               • World Biofuel Day is observed every year on 10th August to create awareness about the importance of non-fossil fuels as an alternative to conventional fossil fuels and to highlight the various efforts made by the Government in the Biofuel sector.  • World Biofuel Day is being celebrated by Ministry of Petroleum and Natural Gas since 2015. Related details: • Any hydrocarbon fuel that is produced from an organic matter (living or once living material) in a short period of time (days, weeks, or even months) is considered a biofuel. • Biofuels may be solid, liquid or gaseous in nature. Solid: Wood, dried plant material, and manure Liquid: Bioethanol and Biodiesel Gaseous: Biogas • Biofuels are derived from renewable bio-mass resources.  • They provide ...

Tokyo Olympics 2020 Winners (India)

  ➽ Tokyo Olympics 2020 Winners ➽ 1) ๐Ÿฅ‡India’s Neeraj Chopra won the first ever athletics medal for India in Olympics. At the javelin throw final, Neeraj Chopra threw 87.58m in his second attempt. This won him the gold medal at the Tokyo Olympics. ➨Neeraj Chopra became second Indian to get gold after Abhinav Bindra. ➨Neeraj Chopra was the best prospect for India to get a medal. On August 4, he became the first Indian javelin thrower in history to qualify for the final at the Olympic Games. 2) ๐Ÿฅˆ Mirabai Chanu ended India's 21-year wait for a weightlifting medal at the Olympics by clinching a silver medal in the 49kg category. ➨ This is India's second weightlifting medal at the Olympics overall, after Karnam Malleswari, who won the bronze at the 2000 Sydney Olympics. Mirabai, with this has also become overall the 17th individual Olympic medallist from India (from 1900 to 2021). 3)๐ŸฅˆIndian wrestler Ravi Kumar Dahiya bagged the silver medal after losing in the final of me...

Neeraj Chopra achievements

  ๐Ÿ†๐Ÿ‡ฎ๐Ÿ‡ณNEERAJ CHOPRA๐Ÿ‡ฎ๐Ÿ‡ณ๐Ÿ† ๐Ÿ”ท Sport : Track and field ๐Ÿ”ท Event(s) : Javelin throw ๐Ÿ”ท Coached By : Uwe Hohn ๐Ÿ’  Neeraj Chopra is from Khandra village, Panipat district, Haryana ๐Ÿ† Gold medal – 2020 Tokyo Olympics ๐Ÿ† Gold medal – Asian Games 2018 Jakarta, Indonesia ๐Ÿ† Gold medal – Commonwealth Games 2018 Gold Coast, Australia ๐Ÿ† Gold medal – Asian Championships 2017 Bhubaneshwar, Odisha ๐Ÿ† Gold medal – South Asian Games 2016 Guwahati/Shillong ๐Ÿ† Gold medal – World Junior Championships  2016 Bydgoszcz, Poland ๐Ÿ’  Neeraj Chopra has been conferred with the Arjuna Award in 2018 ๐Ÿ’  Neeraj Chopra has won gold in men's javelin throw at Lisbon athletics meet in Portugal