GDP Growth Forecast: Fitch Ratings today (December 8) has reduced India’s economic growth forecast for the current fiscal year 2022. According to Fitch Ratings, the Indian economy can grow at the rate of 8.4 percent in the financial year 2022. Earlier, Fitch had estimated that the Indian economy could grow at the rate of 8.7 percent in the fiscal year 2022. According to Fitch, after recovering from the aftershocks of the second wave of corona virus, the Indian economy grew at a sluggish pace contrary to estimates, due to which the economy growth estimate has been reduced. However, Fitch has raised the growth forecast for the next fiscal year 2023 to 10.3 percent. Earlier, Fitch had projected the Indian economy to grow at the rate of 10 percent in the financial year 2023.
RBI Monetary Policy Committee: No change in repo rate for the ninth time in a row, inflation is not expected to moderate in the current financial year
Unfavorable performance in the service sector
In the last financial year 2021, the economy suffered a major setback due to the lockdown imposed to stop the infection of Corona virus. Due to this, the Indian economy shrank by 7.3 percent. Fitch said in its Global Economic Outlook that the sharp fall in the economy due to the delta variant, there was a sharp recovery in the third quarter July-September 2021. GDP shrank 12.4 per cent in the April-June 2021 quarter, while GDP grew by 11.4 per cent in the next quarter, July-September 2021. However, this increase was less than expected. The growth in the service sector was not as expected, which affected the economy.
RBI increased UPI limit for investment in IPO, now you can invest more money in government bonds
RBI may increase interest rate next year
The speed with which vaccination is accelerating in India will reduce the chances of restrictions due to corona in the coming times and it will support consumer confidence. However, according to Fitch Ratings, there is a risk of recovery in the near term as less than a third of the people have received all the doses of the vaccine. Apart from this, the new Omicorn variant of the coronavirus has also increased the risk. Fitch estimates that the RBI may increase interest rates next year. By the beginning of next year 2022, RBI can increase interest rates by up to 75 basis points (0.75 per cent).
Get Business News ,, latest India News ,, and other breaking news on share market, investment scheme and much more on Business Khabar. Like us on Facebook, Follow us on Twitter for latest financial news and share market updates.
.