Omicron restrictions may shave off up to 150 bps from FY22 GDP growth

India Ratings said concerns relating to Covid-19 and its impact on the ongoing economic recovery had resurfaced in view of the spread of Omicron

Omicron-induced lockdowns, among other factors such as an increase in raw material prices, may pull down growth in gross domestic product (GDP) by up to 150 basis points (bps) for this fiscal year, according to economists.
 
Meanwhile, the government will release the first advance estimates of GDP for FY22 on Friday. It is to be seen whether it takes the Omicron effect into consideration.
 
Advance estimates are released to provide the numbers to the finance ministry to work on the Budget for the next year.
 
The curbs will affect economic activities mainly during the fourth quarter of