India Ratings and Research (Ind-Ra) estimates the gross domestic product (GDP) growth will bounce back to 10.4% year on year (yoy) in FY22, primarily driven by the base effect. The estimate also shows that after recording negative growth during 9MFY21, GDP growth will finally turn positive at 0.3% yoy in 4QFY21.
Although the recovery in FY22 on a yoy basis will be V-shaped, the size of the GDP will barely surpass the level attained in FY20 and will be 10.6% lower than the trend value. The impact of COVID-19 pandemic and lockdown on the economy, although subsiding, will continue to delay the normalisation of economic activities in the contact-intensive sectors till the mass vaccination/herd immunity becomes a reality.
News Source:- Moneycontrol