According to credit rating agency ICRA ratings, the country’s gross domestic product (GDP) will grow at 8.5 percent in FY2021-22. It expects the gross value added (GVA) at basic prices to grow at 7.3 percent in FY2022. Icra said if vaccine coverage is accelerated following the re-centralised procurement policy, the GDP expansion in FY2022 may be as high as 9.5 percent, with a widening upside in Q3 and Q4 of FY2022. In FY2020-21, the country’s GDP contracted by 7.3 percent.
Last week, the Reserve Bank of India had projected real GDP growth at 9.5 percent in 2021-22. For the full year, it expects the GDP growth to exceed the GVA growth by 120 basis points (bps), based on the expectations related to the value of taxes on products and subsidies on products in FY2022.