Indian economy to grow 11% in fiscal 2022, study shows

A new report by ratings firm CRISIL said India’s GDP growth is expected to rebound to 11 percent next fiscal year, as the rollout of Covid vaccinations and “investment-focused government spending converge.”

The second half of FY22 is projected to see a more broad-based pick-up in economic activity, due to a commodity price lift, large-scale vaccinations, and likely stronger global growth, said the ratings firm. 

“Policymakers and regulators have primarily facilitated the revival. India’s medium-term growth now hinges on a kickstart of the investment cycle,” said CRISIL’s managing director and CEO Ashu Suyash.

“There are early positive signs, powered by government spending, such as through the National Infrastructure Pipeline, demand-driven capex, and the Centre’s Production-Linked Incentive (PLI) scheme.” 

According to the report, trade has normalized faster than the rest of the economy, with both exports and imports scaling pre-pandemic levels.

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