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India's real GDP to expand by 10.1% in FY2022: Icra

-Livemint.com/ PTI

Icra expects the headline CPI inflation to decline to 4.6% in FY2022 from 6.4% in FY2021, while exceeding the mid-point of the Monetary Policy Committee's medium target of 4%, for the third consecutive year

MUMBAI: Domestic rating agency Icra Ratings on Monday said it expects the country's real gross domestic product (GDP) to grow by 10.1% in FY2022.

It, however, said the value of GDP in the next financial year will only mildly surpass the level that had been recorded in FY2020.

“After a 7.8% pandemic-driven shrinkage in the ongoing fiscal (FY2021), India's real GDP is projected to record a growth of 10.1% in FY2022. The seemingly-sharp expansion will be led by the continued normalisation in economic activities as the roll-out of Covid-19 vaccines gathers traction, as well as the low base," the agency principal economist Aditi Nayar said in a report.

The agency's principal economist expects a multi-speed recovery in FY2022, with the contact-intensive sectors, discretionary consumption and investment by the private sector trailing the rest of the economy, in the arduous march back to attaining, and sustaining, pre-Covid levels.

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