GDP Likely To Grow At 9.6 Per Cent In FY22, Says SBI Report

The research arm of the country’s largest lender had earlier forecast the country’s GDP growth between 8.5 per cent and 9 per cent

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New Delhi: India’s GDP growth is likely to be in the range of 9.3-9.6 per cent, according to a latest SBI research report published on Monday.

The research arm of the country’s largest lender had earlier forecast the country’s GDP growth between 8.5 per cent and 9 per cent. However, SBI later revised the projection of the GDP in line with the Reserve Bank of India estimate of around 9.5 per cent for FY22.

“According to SBI’s Nowcasting Model, the forecasted GDP growth for Q2 FY22 would be 8.1 per cent, with an upward bias. The full year (FY22) GDP growth is now revised upwards to 9.3-9.6 per cent from our earlier estimate of 8.5-9 per cent,” the research report, Ecowrap, said.

According to PTI report, the average GDP growth of 28 selected economies has decelerated to 4.5 per cent in Q3 (2021) as against 12.1 per cent. Also, at an annual rate of 9.3-9.6 per cent, the country’s real GDP growth would now be 1.5-1.7 per cent higher than the pre-pandemic level of FY20.

On November 19, Prime Minister Narendra Modi announced the government will repeal the three farm laws. He also said that a committee will be set up to decide on matters, including promotion of zero budgeting farming, scientifically change the crop pattern keeping in mind the changing requirements of the country and make MSP (Minimum Support Price) more effective and transparent.

The report also said that five agricultural reforms that could act as enablers even without these bills.

“First, instead of MSP as a price guarantee that farmers are demanding, the government could insert a quantity guarantee clause for a minimum period of five years that procurement to production percentage of crops (being currently procured) should at least be equal to last year percentage,” the report said.

The report also stated that the number of Covid-19 cases has declined to 2.3 per cent in November against the September figures. The other positive development that will help boost Q2 GDP is that by Saturday last week, 115.79 crore vaccine doses had been administered in the country, with 81 per cent of the eligible population receiving at least a single dose and 42 per cent of the eligible population getting both the doses.