New Delhi, Nov 25, : India’s Q2FY22 GDP will grow by 8.5% year-on-year (YoY), thanks to support from a favorable base, Acuite Ratings and Research stated. According to the ratings agency, GDP growth will also be helped by the gradual lifting of lockdown restrictions in most states towards the end the last quarter.
It also predicted a GVA increase of 7.5% YoY in Q2FY22.
According to the agency the steady progress in vaccination has improved consumer sentiments.
The economy has also been supported by relative resilience in the industrial sector and a gradual recovery in the services sector with improved mobility and buoyancy in exports.
“For FY22 we maintain our GDP growth forecast of 10 per cent, albeit with some downside risk emanating from global supply chains disruptions, higher commodity prices that may tighten inflationary pressures as demand makes an comeback, and a potential volatility on global markets as central bank attempts to normalize monetary policies,” Suman Chowdhury, its Chief Analytical Officer, stated.
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