State Bank of India (SBI) economists have slashed their GDP growth forecast for the current fiscal year 2021-22 to 7.9 per cent. He had previously had a growth rate of 10.4 per cent. This is the lowest growth rate forecast among all analysts. Economists of major public sector banks said the second wave of Kovid-19 infection was a major contributor to the large reduction in growth rate estimates. At the same time, Moody’s Investors Service said on Tuesday that India’s GDP growth rate for the current fiscal year ending March 2022 is likely to be 9.3 percent, but is projected to be 7.9 percent in the next fiscal year 2022-23.
GDP estimates for the current fiscal year have no impact
“This time the epidemic has a far wider impact on the economy,” the SBI economist’s report said. The rural economy is not showing much militancy as compared to the city. Specific demand will not have a significant impact on the current fiscal year GDP estimates. Economists said commodity prices were rising internationally, which would affect the growth rate of GDP. “Total consumption depends on the resurgence of business, hotels, transportation, communications and services. Overview estimates suggest that the livelihood of some 25 million families depends on these areas.
GDP will rise slightly over 2019-20
He added that the real GDP in the current financial year with Rs 145.8 lakh crore is slightly higher than in 2019-20. Economists say the recovery of the economy will be in ‘W shape’. Previously a ‘V-shaped recovery’ was planned for the economy. The W-shaped recovery indicates that the economy has had a sharp decline and then a recovery and then a sharp recession and a sharp recovery in the economy.
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However, despite the second wave of Kovid-19, the Reserve Bank has maintained its growth rate forecast for the current fiscal year at 10.5 percent. Other analysts are downgrading their growth forecast for the current fiscal year. According to official figures released on Monday, the economy grew at a rate of 1.6 per cent in the fourth quarter of last fiscal year. In the full fiscal year of 2020-21, the economy is down 7.3%.