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Business News/ Economy / GlobalData cuts India GDP growth forecast for 2022 amid Russia-Ukraine crisis
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GlobalData cuts India GDP growth forecast for 2022 amid Russia-Ukraine crisis

Meanwhile, ratings agency Moody's Investor Service has recetnly revised India's growth forecast upwards to 9.5% for CY22

India GDP growth rate in the third quarter of the current fiscal slipped to 5.4% compared to 8.5% in the previous quarter (Mint)Premium
India GDP growth rate in the third quarter of the current fiscal slipped to 5.4% compared to 8.5% in the previous quarter (Mint)

GlobalData, a London-based data analytics and consulting company, on Friday said it has lowered India's economy growth forecast to 7.8% for 2022 due to the nation's exports being impacted by the Russia-Ukraine war and spiking oil prices causing ripple effects.

"The ongoing Russia-Ukraine war will have a negative impact on India's exports and spike in oil prices will cause ripple effects on input prices and consumer goods leading to inflationary pressures.

"Against this backdrop, GlobalData revises down the country's economy growth forecast by 0.1 percentage point to 7.8% for 2022," the statement said.

Meanwhile, ratings agency Moody's Investor Service has revised India's growth forecast upwards to 9.5% from 7% earlier for the Calendar Year 2022 (CY22), and retained its forecast of 5.5% for CY23.

The speed of the recovery from the first lockdown-led contraction in Q2 2020, and subsequently in Q2 2021 during the Delta wave, was stronger than expected, and the economy is estimated to have surpassed the pre-Covid level of GDP by more than 5% in the last quarter of 2021, Moody's said.

The Reserve Bank of India (RBI) had earlier projected India's economic growth for the financial year 2023 (FY23) at 7.8%. It may be noted that Economic Survey has projected a growth rate of 8-8.5% for the next financial year ending March 2023.

India’s GDP growth rate in the third quarter of the current fiscal slipped to 5.4% compared to 8.5% in the previous quarter. The Centre has also revised its GDP growth expectation for FY22 downwards to 8.9% from its first advance estimate of 9.2% released in January.

India's manufacturing sector logged a growth rate of 0.2% in the third quarter of FY22, reflecting the negative impact of the covid-19’s third wave in the country.

Manufacturing GVA came in at 5.91 lakh crore in Q3FY22, down from 6.24 lakh crore reported in the second quarter of the ongoing fiscal.

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Published: 04 Mar 2022, 05:38 PM IST
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