Indian Economy News

India's economy seen growing 9.2% in FY22 on upbeat rural sector: BoB

According to a Bank of Baroda report, India's economy is predicted to grow by 9.2% in the fiscal year ending March 2022, up from 7.3% the previous year, thanks to resilience in the rural sector, an increase in bank lending, and increased GST collections. According to the government's preliminary forecasts, the gross domestic product (GDP) will expand by 8.9% in FY22.

Contact-intensive industries are predicted to recover faster, and the economy is expected to increase by 5.5% in Q4 FY22, up from 5.4% in Q3. The main factors contributing to this type of growth are rural sector resilience with a normal monsoon and higher foodgrain production; an increase in bank credit growth to push financial services; and improvement in the services sector with passenger traffic, rail freight, and port cargo leading the race. Increased GST collections have also offered much-needed assistance. A combination of monetary (RBI rate hike frontloading) and fiscal (excise duty reduction) policy is projected to boost GDP prospects.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.