FICCI projects 2021-22 GDP growth at 9.1%
11 October 2021: The latest round of FICCI’s Economic Outlook Survey has put forth an annual median GDP growth forecast for 2021-22 at 9.1%. This marks a marginal improvement from the growth projection of 9.0% recorded in the previous survey round (July 2021).
Economic recovery, post the second wave of the pandemic, seems to be holding ground and the same is also reflected in the incoming data on various high frequency indicators. The forthcoming festive season should support this momentum.
However, with Diwali being a major festival and with some sense of complacency setting in with regard to the Covid situation, the likely surge in people’s movement can again lead to a rise in the number of new covid cases. A note of caution continues to underline as far as the health and economic situation is concerned.
The median growth forecast for agriculture and allied activities has been put at 3.2% for 2021-22. Pick up in monsoon rains in the latter part of the season and subsequent increase in kharif acreage is likely to keep growth expectations of the agriculture sector upbeat. Industry and services sector are projected to grow by 12.9% and 8.6% respectively during the year.
The present round of FICCI’s Economic Outlook Survey was conducted in the month of September 2021 and drew responses from leading economists representing the industry, banking and financial services sector. The participating economists were also asked to share their opinion on the upcoming monetary policy review and the future path of monetary policy.
There was clear unanimity that the Reserve Bank of India will maintain status quo on the repo rate and will continue with an accommodative stance in the forthcoming monetary policy.