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- ICRA Estimates On GDP Growth, The Growth Rate May Be 8.5% In The Financial Year 2021 22, The Benefit Of Reducing Corona Infection Will Be
MumbaiOne hour ago
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The economic growth is slowly coming back on track due to the continuously decreasing corona cases in the country. According to rating agency ICRA (ICRA), the GDP growth rate can be 8.5% in the financial year 2021-22. Which had fallen 7.3% in 2020-21.
Economy will get relief due to reduction of restrictions
According to Aditi Nair, Chief Economist of ICRA, there were restrictions in the states during April-May in 2021. Also, the return of Corona had a bad effect on the pi frequency indicators. However, now the economy is getting back on track due to the relaxation from the state governments and the steady decline in the infection rate. In such a situation, we expect that the GDP rate can be 8.5% in 2021-22.
14.9% growth forecast in the first quarter
Icra said that if the pace of vaccination continues, then the GDP growth rate can reach 9.5% in 2021-22. Similarly, last week the Reserve Bank i.e. RBI has also estimated the growth rate to be 9.5% for 2021-22. Aditi Nair has also expressed hope of positive growth in GDP for the coming quarters. He said that the growth rate for the first quarter of 2021-22 is 14.9%, 8% in the second quarter, 5.6% in the third quarter and 7% in the fourth quarter.
Demand will be affected due to spread of infection in rural areas
According to the rating agency, the second wave of Corona has had a bad effect on customer sentiment and demand. Also healthcare and fuel expenses have increased. While the income has decreased. The spread of the epidemic in rural areas has increased the expenditure on medicine. This is expected to weaken demand. On inflation, ICRA said that retail inflation may average 5.2% and wholesale inflation may remain at 9.2%. At the same time, the nominal GDP rate is estimated to be 15-16% in 2021-22.