GDP to expand 5% in FY22
The country's economy, which is likely to contract by 5 percent in the current fiscal, may expand by around 5 percent in the next financial year according to Former RBI Governor Duvvuri Subbarao. "I do believe that getting up to 5 percent next year (FY22) is quite probable. The reason I say that is because this (COVID-19) is not a natural disaster. Our factories are still standing, our infrastructure and transport systems are still there," Subbarao said. "Once the lockdown is lifted and the economy is given a green signal to restart, I am sure that we can ramp up pretty soon and reach at least 5 percent (growth rate)," he said. Amid this grim situation, the former RBI governor said he sees two silver linings -- relative stability of the external sector and bumper agricultural crop production, which would support the economy. S&P Global Ratings too has forecasted a 5 per cent contraction in 2020-21 (versus 1.8 per cent growth forecast it made in April), S&P said growth is expected to pick up to 8.5 per cent in the following fiscal (up from the previous forecast of 7.5 per cent). The GDP is projected to expand by 6.5 per cent in FY23 and 6.6 per cent FY24.
Tags : News/Views Latest News RBI economy GDP lockdown S&P Global Ratings 5% in FY22 Duvvuri Subbarao