NEW DELHI: The rapid spread of the Omicron variant has prompted economists to downgrade GDP growth projections and a clutch of agencies now estimate growth for the current fiscal year to be below the double-digit expansion forecast earlier.
"Curbs in various forms have already started in several states, which are impacting economic activities," said Sunil Sinha, principal economist and director public finance at India Ratings and Research. "Ind-Ra's estimate shows that GDP growth in Q4FY22 will now come in at 5.7% y-o-y, which is 40 basis points lower than the agency's earlier estimate of 6.1%. For the entire FY22, the GDP is expected to clock a growth rate of 9.3% y-o-y, 10bps lower than our earlier estimate of 9.4%."
Brickworks Ratings also downgraded its GDP growth forecast for 2021-22. "For the full fiscal, we revise our GDP estimates for the current fiscal to 8.5-9% as against earlier estimate of 10%," said M Govinda Rao, chief economic adviser at Brickwork Ratings.
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