New Delhi: India’s economy is projected to grow 9.2% in the current fiscal, helped by a strong agriculture sector and recovery in manufacturing, construction and services sector, but the third Covid wave will hurt expansion in the coming months. can deliver.
If a growth of 9.2% is realized it would be the fastest growth since 1988-89 when the economy grew at 9.6%. The data that is available for 17 years will be the fastest expansion under the new methodology.
Nominal GDP (including inflation) is estimated at 17.6%. The size of the economy is estimated at $3.1 trillion based on current prices in dollar terms.

According to the World Bank, India’s GDP in current dollar terms grew to $2.9 trillion in 2019, which fell to $2.7 trillion in 2020 due to the impact of COVID.
This growth rate will also help it retain the tag of the fastest growing major economy in the world. The economy has recovered after the grim impact of the strictest lockdown imposed to contain the spread of coronavirus, which led to a record 24.4% contraction in the June quarter of 2020-21.

The GDP estimate of the National Statistical Office (NSO) is slightly lower than that of the Reserve Bank of India (RBI), which had projected the economy to grow at 9.5%. The International Monetary Fund (IMF) also expects it to expand on similar lines.
But the third wave of the pandemic, led by Omicron Edition, has cast a shadow on the strength of growth and recovery.
Many economists have downgraded their GDP growth projections for the full year and expect the restrictions to be unveiled by states will have an impact on businesses and growth in the coming months.

The NSO also cautioned that the 9.2% GDP growth forecast in the first advance estimates does not take into account a number of factors and may result in revisions due to the impact of government measures.
“However, these are preliminary estimates for 2021-22. Actual performance of various indicators, actual tax collection and expenditure on subsidies in subsequent months, new relief measures for weaker sections (such as providing free food grains which have now been extended till March 2022) and other measures, if any, The subsequent revisions to these estimates made by the government to contain the spread of COVID-19 will have an impact,” the NSO said in its statement.
Madan Sabnavis, Chief Economist, Bank of Baroda, said, “The estimate does not take into account the impact of Covid and hence the number may decline.”
“Based on this number, RBI will probably retain its earlier stance and will not make any rate revisions. In fact, the accommodative stance will continue and the hike in the reverse repo rate will be deferred. The lockdown will likely ensure that an easy liquidity policy is adopted unless the inflation numbers to be released are very high, which seems unlikely,” Sabnavis said.

https://indiatimesnow.online/2022/01/07/india-is-now-a-3-1-trillion-economy/