Economic recovery losing steam GDP growth may be below 9pc in FY22 due to 2nd COVID wave Survey

    Kolkata, May 16 (PTI) Amid a raging second wave of
COVID-19 and subsequent restrictions on business activities
imposed by several states, economic recovery is beginning to
lose steam and the country's GDP growth is likely to be below
nine per cent for the current fiscal, according to a survey.
    At least 80 per cent of the respondents expect
consumer demand for non-essential items as well as investment
to be severely impacted due to the current COVID situation,
the survey conducted by Care Ratings said.
    "The economic recovery is beginning to lose steam with
infection rates scaling record highs. Almost seven out of 10
respondents expect GDP (growth) to be below nine per cent for
FY22," it said.
    According to the study, the majority of respondents
expect the lockdown announced by several states will stay till
May-end.
    Altogether, 54 per cent of the people, who
participated in the survey, believe that the lockdown is a
solution to the current COVID-19 situation in the country, it
said.
    Little more than three-fourth of the respondents feel
that the current lockdown is not as stringent as the
restrictions imposed last year, it added.
    Another rating agency CRISIL said India's GDP growth
is likely to drop to 9.8 per cent in a moderate scenario,
assuming the second wave of coronavirus disease peaks by May-
end.
    The economic growth may slip further to 8.2 per cent
in the severe situation when the second wave of the pandemic
peaks by June-end, it added. PTI BSM
BDC BDC

(This story has not been edited by THE WEEK and is auto-generated from PTI)