CRISIL cuts India’s GDP forecast to 9.5% from 11%

June 8, 2021

Ratings agency, CRISIL, has cut India’s gross domestic product (GDP) growth forecast from 11 percent to 9.5 percent for fiscal year 2021-2022.

Highlights

Downward forecast reflects that second covid-19 has hit two engines of growth private consumption and investment.
It has thrown Indian economy to most severe contraction since Independence.

Pinpricked Growth report

As per “Pinpricked growth report” by CRISIL, rash of afflictions forced states to lock down which hurt consumer & business confidence again in 2021.
Report mentioned about third wave & tardy vaccinations and highlighted that; states would be careful of fully unlocking anytime soon. This in turn affect the economy.
According to it, Covid-19 restrictions will continue and mobility will be affected in some form or other till August 2021.
Report highlighted the significance of vaccination in economic recovery. Economic recovery will be a function of pace of vaccination in coming months.

Other Reports on Growth

Medical scientists projected; India could be hit by third Covid-19 wave which have significant downside risk to the growth. It forecasted GDP growth to be around 8 per cent. Similarly, Reserve Bank of India has downgraded GDP projection from 10.5 per cent to 9.5 per cent in 2021-22.

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