ICRA’s revised ratings shows India’s Q2 GDP growth estimate upwards at 7.9%

GVA for the quarter is anticipated to rise by 20 foundation factors to 7.4 percent, the company stated in a report

November 19, 2021

Rating agency ICRA revises India’s Q2 FY 22 GDP growth to 7.9%, up by 20 pts

Rating agency ICRA has estimated a rise in the GDP growth for India in the second quarter of the current financial year to 7.9%. The surge is expected as a result of an increase in government spending, ICRA reported. An indication of a robust trend in the production of major Kharif crops also seemed to have supported the growth, the report added.

ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) studies timely credit risk opinions on borrowers and their borrowing programmes.

ICRA has revised India’s gross domestic product (GDP) for Q2 FY22 upward by 20 basis points to 7.9 percent. The agency has reported that the Gross Value Added (GVA) for the quarter is expected to rise by 20 basis points to 7.4 percent.

The agency estimates growth by a gross value-added basis for the industry, services, and agriculture, forestry, and fishing to come at 8.5%, 7.9%, and 3% percent, respectively, for the quarter.

According to Aditi Nayar, Chief Economist at ICRA: “Economic activity in Q2 FY22 was supported by a pick-up in industrial and service sector volumes after the second wave of COVID-19 subsided and rising vaccine coverage revived confidence. Additionally, healthy Central and state government spending, robust merchandise exports, and continuing demand from the farm sector supported economic activity in that quarter.”

The report cited that revenue expenditure for 22 states such as Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Himachal Pradesh, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Mizoram, Nagaland, Odisha, Punjab, Rajasthan, Sikkim, Tamil Nadu, Telangana, Tripura, Uttarakhand, and Uttar Pradesh expanded by 13.1 percent in Q2 FY22, as compared to 1 0.6 percent in Q1FY22.

The official GDP number for Q2 FY22 is slated to be released on November 30.

[With Inputs from IANS]

PGurus is now on Telegram. Click here to join our channel and stay updated with all the latest news and views

For all the latest updates, download PGurus App.