Trending

Stories

India’s GDP May Grow Faster Than Estimated in Q4 but FY22 Growth May Falter

Tidio Live Chat Software - Add Tidio live chat software to your website in minutes. Contact visitors and turn them into happy customers. Enhance their experience and boost your sales. Get it for Free

WP Rocket - WordPress Caching Plugin

Must Read

There is both good news and bad news on the economic front for India, which is looking to come out from the second and deadlier wave of the Covid pandemic.

The good news is that the country’s GDP is expected at a faster pace than expected in the January-March quarter of 2021 as a pick up in economic activity during the period of fading pandemic surge has resulted in higher than expected output from various sectors.

Also Read

But the bad news is that Covid 2.0 and continuing lockdowns in various parts of the country may push all hopes of faster economic recovery in FY22 downwards, with GDP only managing to grow in single digit this year rather than high double-digit growth projected earlier.

As per an Ecowrap report prepared by a research team from SBI headed by banks group chief economic adviser Soumya Kanti Ghosh, GDP growth for Q4 (FY21) would be around 1.3% (with downward bias) as against NSO projection of a negative -1%.

Elegant Themes - The most popular WordPress theme in the world and the ultimate WordPress Page Builder. Get a 30-day money-back guarantee. Get it for Free

With this, the report has projected that GDP decline for the full year would now be around 7.3% (compared to our earlier prediction of -7.4%).

“However, due to renewed lockdowns in almost all states since April, 21 owing to rise in infections, we believe that real GDP growth for FY22 would be in single digits as against our earlier forecast of 10.4%,” the SBI Ecowrap report said.

The report’s assertion on higher Q4 growth has also been based on corporate performance during the period. It said that corporate results so far also reinforce the fact that Q4 growth would be much better than the Q3 growth. The corporate GVA of 625 companies has expanded by 62.04% in Q4 as compared to 12.98% growth in Q3 (of 4164 companies ).

“However the entire projection for Q4 FY21 is dependent on how much the past data will be revised by NSO. Past experience on data revision indicates that apart from providing data for Q4 NSO also revises quarterly data for present/previous fiscal year and annual GDP estimate,” Ecowrap report said.

Though the country-wise real GDP data indicates that the situation has improved over one year (after battling the second/third wave of Covid-19), most countries are still in recession, and their Q1 2021 (or Q4 FY21) real GDP growth was in contraction mode. The decline of average real GDP for 24 countries has improved from 2.9% in Q4 2020 to a decline of 0.3% in Q1 2021. Very few countries exited recession in Q1 2021, with contraction ranging from (-)6.1% (UK) to 18.3% (China).

Interestingly, had India’s growth rate crossed 1.7% in Q4FY21, India would have been the second fastest country after China in terms of GDP growth, and going by Ecowrap reports estimate of 1.3% GDP growth, India would still be the 5th fastest growing country amongst 25 countries (that have released their GDP numbers so far).

“We hope for such optimism in terms of Covid-19 numbers and vaccination soon,” the report said.

iThemes WordPress Hosting

Stay updated

Subscribe to our newsletter and never miss an update on the latest tech, gaming, startup, how to guide, deals and more.

Latest

Stories

- Advertisement -
- Advertisement -

Latest

Grow Your Business

Place your brand in front of tech-savvy audience. Partner with us to build brand awareness, increase website traffic, generate qualified leads, and grow your business.

- Advertisement -

Grow Your Business

Get these business solutions, tools and services to help your business grow.
Elementor

Elementor -Join 5,000,000+ Professionals Who Build Better Sites With Elementor. Build your website with 100% visual design that loads faster and speeds up the process of building them.

WP Rocket

WP Rocket - Speed up your website with the most powerful caching plugin in the world. The website speed increase means better SEO ranking, user experience, and conversation. It’s a fact that Google loves a fast site.

Kinsta

Kinsta - If you are looking for WordPress managed hosting, Kinsta is in the leading front. Kinsta provides WordPress hosting for a small or large business that helps take care of all your needs regarding your website with cutting-edge technology.

OptinMonster

OptinMonster - Instantly boost leads and grow revenue with the #1 most powerful conversion optimization toolkit in the world. 700,000+ websites are using OptinMonster to turn their traffic into leads, subscribers, and sales.

Related

- Advertisement -
- Advertisement -
Tesla Records Double Net Profit in 2022 India to Produce Upcoming iPhones: Trade Minister Japanese Professor Developed A Power Semiconductor made of Diamond Google Releases New Product for India’s Merchants Indian EV Startup Unveil Two AutoBalancing Electric Scooters OPPO Find X6 Pro Images Render via Weibo Sony Develops New Tech to Reduce Noise of Image Sensors Tesla’s S & Y Models Earn Best-in-Class Cars of 2022 India Approved $320m to Promote Homegrown Payments Network Twitter Roll Out TikTok-like ‘For You’ Timeline on iOS
Nothing Phone Enters US with Beta Membership Program Finally! Apple’s VR Headset Coming this Spring Harvard Scientists Develop New Cell Therapy to Kill, and Prevent Brain Cancer HTC Vive XR Elite VR/AR Headset Now Selling for $1099 Realme 10 Launched in India with Helio G99 Gaming Chipset Twitter Data Breach Revealing User’s Private Information Instagram New Feature to Create Albums With Friend Redmi Note12 Pro Plus Launched in India