COVID-19 resurgence dampens India’s GDP forecasts for FY22

COVID-19 resurgence dampens India's GDP forecasts for FY22
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The resurgence of COVID-19 cases is posing greater risks to India’s GDP growth.

Leading brokerages are now downgrading India’s GDP growth projections for the current fiscal year to as low as 10 per cent.

On account of lockdowns threatening the fragile recovery with COVID-19 resurgence, it poses a risk to India’s economy.

Nomura has downgraded projections of economic growth for the fiscal year ending March 2022 to 12.6 per cent from 13.5 per cent earlier.

However, JP Morgan now projects GDP growth at 11 per cent from 13 per cent previously.

Although India’s GDP growth had been on the decline even before the COVID-19 pandemic.

Many experts see it to be a ‘W shaped’ recovery. Some brokerages see the spike in COVID-19 cases as a risk to economic recovery. And the GDP is unlikely to achieve the earlier projected 3 per cent growth for March quarter 2020-21.

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