GDP growth to bounce back in FY22 but full recovery not in sight until FY23: Ind-Ra
Fiscal deficit of 6.8 per cent of GDP in FY22 is achievable, says Ind-Ra, though, like FY21, it depends on Centre achieving disinvestment target of Rs 1.75 lakh crore in FY22

- Feb 10, 2021,
- Updated Feb 10, 2021 2:20 PM IST
India's gross domestic product (GDP) growth will bounce back to 10.4 per cent year-on-year (YoY) in FY22 on base effect, India Ratings and Research (Ind-Ra) has estimated. The rating agency said after recording contraction in 9MFY21, GDP growth will finally turn positive at 0.3 per cent YoY in Q4.
Although the recovery in FY22 will be V-shaped, the GDP size will barely surpass the level attained in FY20, Ind-Ra said, adding that it'll be 10.6 per cent lower than the trend value. It said the full recovery will only be visible in FY23.
Despite the lifting of most curbs and declining cases, the impact of COVID-19 pandemic and lockdown will continue to delay complete normalisation of economic activities till mass vaccination/herd immunity becomes a reality, Ind-Ra stated.
India's gross domestic product (GDP) growth will bounce back to 10.4 per cent year-on-year (YoY) in FY22 on base effect, India Ratings and Research (Ind-Ra) has estimated. The rating agency said after recording contraction in 9MFY21, GDP growth will finally turn positive at 0.3 per cent YoY in Q4.
Although the recovery in FY22 will be V-shaped, the GDP size will barely surpass the level attained in FY20, Ind-Ra said, adding that it'll be 10.6 per cent lower than the trend value. It said the full recovery will only be visible in FY23.
Despite the lifting of most curbs and declining cases, the impact of COVID-19 pandemic and lockdown will continue to delay complete normalisation of economic activities till mass vaccination/herd immunity becomes a reality, Ind-Ra stated.