The latest round of FICCI's Economic Outlook Survey has put forth an annual median GDP growth forecast for 2021-22 at 9.1%, marking a marginal improvement from the growth projection of 9.0% recorded in the previous survey round (July 2021). Economic recovery, post the second wave of the pandemic, seems to be holding ground and the same is also reflected in the incoming data on various high frequency indicators. The forthcoming festive season should support this momentum, the report stated. However, a note of caution continues to underline as far as the health and economic situation is concerned as Diwali could see likely surge in people's movement can again lead to a rise in number of new covid cases.
The median growth forecast for agriculture and allied activities has been put at 3.2% for 2021-22. Pick up in monsoon rains in the latter part of the season and subsequent increase in kharif acreage is likely to keep growth expectations of the agriculture sector upbeat. Industry and services sector are projected to grow by 12.9% and 8.6% respectively during the year. The second quarter GDP data and the upcoming festive season should give a clearer idea of where we are headed on the recovery path and how the demand situation is panning out, FICCI report pointed out. Moreover, we will also get greater clarity on the covid situation, and the possibility of a third wave post the festive season.
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