Economic growth rates have improved, will now grow at the rate of 10.5 percent: Brickwork rating

Indian economy: Domestic rating agency Brickwork Ratings on Monday revised its forecast for the country’s gross domestic product (GDP) growth to 10-10.5 per cent for the current financial year 2021-22. Earlier the rating agency had estimated a growth of 9 per cent. The agency said several indicators of economic growth are pointing to a faster-than-expected recovery in economic activity.

Growth rate revised
“We are revising our GDP growth forecast for FY 2021-22 to 10-10.5 per cent from the earlier 9 per cent,” the credit rating agency said in a report released on Monday.

8.3 percent forecast for the second quarter
The agency has projected GDP growth for the second quarter of FY 2021-22 at 8.3 per cent (on an annual basis) based on a contraction of 7.4 per cent in the first quarter of financial year 2020-21.

Improvements will come in the third quarter
In the first quarter of the financial year 2021-22, the country’s GDP has grown at the rate of 20.1 percent. The agency believes that if the third wave of the epidemic does not come, there will be improvement in the coming quarters as well.

The effect of the third wave will be less visible
The report said that given the rapid pace of vaccination, the impact of potential third wave exposure on growth is limited. However, due to rising crude oil, mineral products, rising cost of raw materials, reduction in supply of coal, etc., the pace of growth may be affected, it said.

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