New Delhi, Oct 7 (Bureau) With economic recovery post second wave holding ground and ensuing festive season expected to support the pace, industry body Ficci on Thursday said that India’s GDP would clock 9.1 per cent growth in the current financial year. The latest growth projection is marginally better compared to the estimate of 9 per cent recorded previously. The median growth forecast for agriculture and allied activities has been put at 3.2 per cent for 2021-22. Industry and services sector are projected to grow by 12.9 per cent and 8.6 per cent respectively during the year.
The industry chamber expects the Reserve Bank of India (RBI) to maintain status quo on repo rate in the bi-monthly monetary policy announcement slated on Friday. “Economic recovery, post the second wave of the pandemic, seems to be holding ground and the same is also reflected in the incoming data on various high frequency indicators. The forthcoming festive season should support this momentum,” Ficci said. Ficci’s growth projection is based on its Economic Outlook Survey conducted in the month of September 2021 which drew responses from leading economists representing industry, banking and financial services sector. The participating economists were also asked to share their opinion on upcoming monetary policy review and the future path of monetary policy.
“There was clear unanimity that the Reserve Bank of India will maintain status quo on the repo rate and will continue with an accommodative stance in the forthcoming monetary policy,” a press note from industry body said. Ficci noted that with Diwali being a major festival and with some sense of complacency setting in with regard to the Covid situation, the likely surge in people’s movement can again lead to a rise in number of new Covid cases. “A note of caution continues to underline as far as the health and economic situation is concerned,” it said. Most economists participating in the survey felt that continued support remains especially critical for the MSMEs and the informal sector.