Indian economy seen growing 9.2% in FY22 on upbeat rural sector, uptick in credit demand: BoB report
Zee News
India's economy is expected to have grown at 9.2 per cent in the fiscal ended March 2022, after having contracted by 7.3 per cent in the last financial year.
New Delhi: India's economy is expected to have grown at 9.2 per cent in the fiscal ended March 2022, after having contracted by 7.3 per cent in the previous financial year, aided by resilience in the rural economy, uptick in bank credit and rising GST collections, a note by Bank of Baroda said. As per government's advance estimates, the gross domestic product (GDP) in FY22 is projected to grow by 8.9 per cent. The National Statistical Office (NSO) will release the final GDP growth figures for FY22 on May 31.
Bank of Baroda (BoB), in a note on GDP expectations by its Economic Research Department, said it expects the economy to post higher growth in the last quarter ended March as mobility improved, allowing opening up of economy with much lower COVID-19 cases across states.
Contact-intensive sectors are expected to make stronger recovery, and the economy is projected to grow by 5.5 per cent in Q4 FY22 against 5.4 per cent in Q3, it said.
A much needed pick up will be visible in services sector, with travel and hospitality contributing significantly. Construction is also likely to edge upwards.
However, agriculture growth might be a tad slow as compared to government expectations (3.3 per cent against government estimate of 3.5 per cent) owing to lower yield of wheat crops, conflict between Russia-Ukraine and heat wave conditions, as per the research note.
