India’s GDP has been facing the brunt of economic breakdown in the wake of Covid-19 and its sustained effects, however, ratings agency Crisil announced on March 9 that India’s GDP is expected to see a speedy recovery climbing up to a growth rate of 11% by FY22. This follows suit with the internal government projections for the upcoming fiscal year as mentioned in the Economic Survey 2020-21.
Crisil expects India’s gdp growth the rebound to 11 percent in fy22, after an estimated 8 percent contraction in FY21, as four drivers – people learning to live with the new normal, flattening of the covid-19 affliction curve, rollout of vaccinations, and investment-focused government spending converge
Talking about the report through a webinar, Crisil’s chief economist DK Joshi recognized the obvious stubborn chokehold of the pandemic and its potential for causing further economic damage, therefore the growth being talked about is expected to be more broad-based during the second half of FY22. As far as the economy reaching pre-pandemic levels are concerned, it will take a considerable amount of time before we reach those levels across all sectors and through a multitude of economic indicators.
As of now, the new norm would be the one we have been under since last year. However, the economic positivity appears to be unanimous as OECD has also revised its projected global economy growth from 4.2% to 5.6% in its latest rendition. Further projecting that Indian economy will fare the best among G20 countries, bouncing back a superb 12.6% through FY22 aided by fiscal support to bridge a gap effectively equivalent to 40 years of continued recessions.
the recovery in activity continued in the fourth quarter of 2020 despite new virus outbreaks in many economies and tighter containment measures. global output remained around 1% lower than it was prior to the pandemic, with marked variation in the pace of recovery across economies.