New Delhi, Aug 24 (IANS) | Publish Date: 8\/24\/2021 12:59:25 PM IST<\/p>\n\n\n\n
India\u2019s GDP growth rate for FY22 is likely to be in double digits on the back of robust performance of country\u2019s tradables sector and a much smaller-than-expected decline in services activity due to pandemic disruptions this year, according to report by Barclays.<\/p>\n\n\n\n
The report authored by Barclays chief India economist Rahul Bajoria has projected upside risks to its FY 2021- 22 GDP projection of 9.2 per cent and says that if all its forecast is realized, GDP growth could be close to double digits for the current fiscal year.<\/p>\n\n\n\n
The banker\u2019s projection on India\u2019s FY22 GDP is close to RBI\u2019s which had retained GDP forecast for the year at 9.5 per cent.<\/p>\n\n\n\n
\u201cIndia\u2019s second COVID-19 wave acted as a stumbling block to the robust recovery that was underway. Still, the economic damage appears to be less than previously expected. With the second outbreak brought under control, a rapid recovery appears underway,\u201d Bajoria wrote in his report.<\/p>\n\n\n\n
Based on this assessment, Barclays has forecast India\u2019s economy expanded 21.2 per cent y\/y in Q2 21 (April-June, or Q1 of fiscal year 2021-22), as a low base and a much smaller loss of activity due to the second COVID wave pushed growth to an all-time high for a single quarter.<\/p>\n\n\n\n
The country\u2019s April-June GDP data, scheduled to be released on August 31, will show a clash of two contrasting themes, Barclays said adding that although sequential momentum slowed due to COVID outbreak, the robust performance of India\u2019s tradables sector and a much smaller-than-expected decline in services activity should support much faster GDP growth than previously expected.<\/p>\n\n\n\n
\u201cLooking at the details, we believe y\/y growth in the rural sector is likely to slow modestly in Q2, as the second wave spread deep into the rural countryside. As such, rural consumption showed clear signs of slowing during the quarter, with weaker sales of fertilizer and two wheelers, and an increase in the rural unemployment rate during the quarter. On the other hand, we expect output in the mining sector to improve modestly,\u201d the report said.<\/p>\n\n\n\n
Bajoria said that Government expenditures fell short of total revenue collections, but this will not weigh too much on activity. Moreover, within services, the low year-earlier base is likely to offset a sequential loss of momentum, as public transport services, fuel demand and financial services likely experienced some loss of activity erosion during the short but intense second COVID outbreak. Still, these sectors are rebounding quickly and should add more meaningfully to growth in Q3 GDP, Barclays said. Despite continued expansive government expenditures, we expect output in the public administration sector to contract y\/y, as a large of share of the spending is transfer payments, which will not contribute to GDP, the report said.<\/p>\n","protected":false},"excerpt":{"rendered":"
New Delhi, Aug 24 (IANS) | Publish Date: 8\/24\/2021 12:59:25 PM IST India\u2019s GDP growth rate for FY22 is likely to be in double digits on the back of robust performance of country\u2019s tradables sector and a much smaller-than-expected decline in services activity due to pandemic disruptions this year, according to report by Barclays. The […]<\/p>\n","protected":false},"author":1,"featured_media":1012,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-1011","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/1011","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/comments?post=1011"}],"version-history":[{"count":0,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/1011\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/media\/1012"}],"wp:attachment":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/media?parent=1011"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/categories?post=1011"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/tags?post=1011"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}