Covid impact: India's economy unlikely to see double-digit growth in FY22

Barclays has pegged growth at 7.7 per cent in a bear-case scenario, if the country is hit by a third wave of the pandemic.

India’s economy is unlikely to see double-digit growth and may grow between 8 per cent and 9 per cent this fiscal year (2021-22, or FY22), against the estimated 11.5 per cent, according to leading economists and rating agencies.

The downward revision of growth projections to as low as 10 per cent is mostly on account of stringency in restrictions by states, relatively slow vaccination pace, and the possibility of a third wave of the pandemic. However, they say the impact will not be as severe as the first wave, and expect the first quarter to see positive growth. 

Soumya Kanti Ghosh, group