FICCI survey projects India's growth for 2021-22 at 9.1%

In a resounding endorsement of the government's fiscal policies, the Federation of Indian Chambers of Commerce & Industry survey has revealed that the annual median GDP growth forecast for 2021-22 is at 9.1 per cent.

According to FICCI's Economic Outlook Survey, the economists who were surveyed believed that the second-quarter GDP data and the upcoming festive season could give a better idea of where the country is headed on the recovery path and how the demand situation is panning out. 

The economists observed that the Reserve Bank of India could continue to resort to milder liquidity draining policies till there is clarity about the possibility of a third wave post the festive season. 

Among other observations, the survey noted that economic recovery post the terrible second wave of the pandemic has been holding ground.

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The survey also suggests that the industrial sector is expected to grow by 12.9 per cent while the services sector could grow by 8.6 per cent during the year. However, the survey report goes on to say that even though the sustained industrial recovery remains elusive the impact of the pandemic on services, especially contact intensive services, has been quite damaging. 

According to economists, the government should continue to support MSMEs and the informal sector and that change in NPA classification norms of MSMEs, reduction in cash margins, change in personal guarantee requirements would help them tide over some of the challenges.

Crediting the RBI for doing a commendable job in easing domestic economic and financial situation throughout the pandemic, the FICCI survey pointed out that maintaining adequate
liquidity would remain important going ahead.

The survey projected the wholesale price index 10 per cent in 2021-22. However, the increased price pressures have been on account of a significant increase in global commodity prices, industrial inputs, metals, agricultural raw materials and food.

Also Read: RBI keeps monetary policy repo rate unchanged at 4%, reverse repo rate unchanged at 3.35%

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• Economic Outlook Survey
• FICCI
• GDP data
• Indian Economy
• October
• September
• economists
• festive season
• 2021-22
• FY2022