Citigroup revises down India GDP forecast by 80 bps to 9% for FY22

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    Sluggish growth momentum in the December quarter and emerging risk from the third COVID-19 wave may shave 80 basis points (bps) off India’s real gross domestic product (GDP) growth to 9 per cent for fiscal 2021-22 (FY22), according to Citigroup, whose India chief economist Samiran Chakraborty said There are reasons to be hopeful of a relatively less-disruptive COVID wave in terms of overall activity.

    “These {reasons] include lower hospitalisation rates (currently seen in cities like Mumbai and experience from South Africa), shorter COVID wave cycle period (40 days of trough-to-peak of daily cases in SA [South Africa], compared to 90-100 days in previous waves), higher vaccination coverage (70 per cent second dose for adults in India), and weakening link between COVID and activity,” Chakraborty said in a research note.

    Citigroup also revised FY23 estimate of real GDP forecast to 8.3 per cent year on year (YoY) in place of the earlier 8.7 per cent.

    Sluggish growth momentum in the December quarter and emerging risk from the third COVID-19 wave may shave 80 basis points off India’s real GDP growth to 9 per cent for FY22, according to Citigroup, whose India chief economist Samiran Chakraborty said There are reasons to be hopeful of a relatively less-disruptive COVID wave in terms of overall activity.

    Fibre2Fashion News Desk (DS)





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