India’s GDP growth revised at 10.2% for FY 2021-22

CARE Ratings revised their forecast down for India’s GDP growth to 10.2% for FY21-22 from its earlier projection of 10.7-10.9%. This is the third time that the projection has been revised. In March, the agency first estimated the GDP growth for India at 11-11.2%. Later, however, the projection was downgraded due to restrictions prevailing in Maharashtra as COVID-19 cases saw a rise. 

The spread of the virus to other states has further led to stricter restrictions in the country ranging from night curfews and lockdown on weekends to full lockdowns. Khumbh Mela and state elections, two big events in the country, have led to gathering of people at large scale while hardly following social distancing norms. The agency in its report, said this is expected to add more active cases at an exponential rate. 

The agency expects to further revise the estimate as the events unrolled throughout May and the agency gets a sense of the duration of prevailing lockdown.