India Ratings has slashed India’s FY22 GDP growth rate projections to 9.4pc from 9.6pc declared earlier.
The rating agency has stated that at the current rate of vaccination it is certain that the entire adult population will not be vaccinated by the end of this year. Economic recovery is proportional to the progress of vaccination drive, as India Ratings had previously stated and pegged GDP growth at 9.4. Failure to vaccinate the population, GDP growth might slip to 9.1pc.
The second wave has started to diminish and recovery is expected at a faster pace. Kharif sowing shoes significant pick-up as southwest monsoons have revived which should boost export volumes and growth. Based on the factors has the agency predicted GDP growth at 9.4pc.
With the second wave impacting not just the urban but the rural population rural households are unlikely to increase consumption apart from healthcare expenditure as the uncertainty of the third wave persists.