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Indian economy expected to grow 6.5% in the current financial year ending Maech 2022, (FY22), down from the earlier forecast of 8.4% amid rapid vaccination progress, the United Nations said.

The flagship United Nations World Economic Situation and Prospects (WESP) 2022 report, launched, said that “India’s economic recovery is on a solid path, amid rapid vaccination progress, less stringent social restrictions and still supportive fiscal and monetary stances."

India's GDP may grow 9.2% in the current financial year ending March 2022, according to the first advance estimates. The economy has gained momentum during the July-September period, inching gradually back to normalcy as coronavirus related disruptions eased significantly in the aftermath of a devastating second wave.

GDP for the second quarter of the financial year grew by 8.4% from a year ago, one of the fastest rates among major economies, data released by the government showed on Tuesday.

Reserve Bank of India (RBI) has projected a GDP growth rate of 9.5% for the current financial year with inflation seen at 5.3%.

The projection is less than the 9.5% forecast by the International Monetary Fund (IMF) and S&P, while Moody's Investors Service had in recent weeks put India's growth forecast at 9.3%. Fitch Ratings has projected an 8.7% expansion.

Vivek Rathi, director at consultancy Knight Frank India, said the third wave of the virus had impacted the estimates. "We hope to have a softer landing from the third wave and continue economic momentum without severe disruptions."

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