With economic activities getting affected across the country due to curbs imposed by states amid surge in COVID-19 cases, Care Ratings has revised down its forecast for Gross Domestic Product (GDP) growth to 10.2 percent in 2021-22 from earlier projection of 10.7-10.9 percent.
This is the third revision by the rating agency in the last one month. "We have revised our forecast for GDP growth for FY22 as the underlying conditions have changed rapidly in the last 30 days or so. It stands now at 10.2 percent," Care Ratings said in a report. On March 24, 2021, the agency had projected GDP growth between 11-11.2 percent based on GVA (gross value added) growth of 10.2 percent.
The spread of the virus in Maharashtra had led to the announcement of a "lockdown" by the state government which began in a less stringent manner from the first week of April, it said.
India's hospitality industry revenue may shrink by 65 percent in FY-2021: Report
Second wave of Covid-19 threat poses increased risks for India’s fragile economic recovery: Report
