GDP

The ratings agency had earlier given a forecast of 8.5 to 9 per cent for FY22. In addition, there have been production constraints caused by a semiconductor shortage in electronic and automobile industries, along with supply shortages in coal and power outages causing a slowdown in the manufacturing sector."

The industry body's rationale behind the estimated GDP growth for the fiscal year came on the back of "supportive government policies, decelerating impact of Coronavirus and continued improvement in key economic and business indicators", Pradeep Multani, President, PHDCCI, said in a statement on Wednesday.

The GDP increase was linked to "a revival of production, which was accompanied by an increase in demand for the services of banks and insurance companies", "rising global energy prices", and an increase in prices of residential real estate in the secondary market, reports Xinhua news agency.

The FY23 estimate is a bit higher than the 3.5 per cent revised forecast for FY22. The agency's earlier forecast for FY22 was 4.1 per cent. "The revision was made due to better-than-expected growth in revenue receipts and higher growth in the nominal GDP in FY22," the agency said. Besides, Ind-Ra estimates India's nominal GDP to grow 17.6 per cent YoY in FY22.

In a statement after the Monetary Policy Committee's bi-monthly meet, Das said the real GDP growth is projected at 17.2 per cent in Q1FY23, at 7 per cent in Q2; at 4.3 per cent in Q3 and Q4 at 4.5 per cent. On Thursday, RBI retained its key short-term lending rates during the sixth and final monetary policy review of FY22.

Morgan Stanley said in a report the focus will be on raising additional resources through strategic divestment and asset monetisation. Indeed, the overall focus of the government should be to utilise all revenue levers effectively (tax compliance to improve tax to GDP, strategic asset sales) to sustainably improve the health of the public sector balance sheet.

We see greater chances of moderating fiscal support from both the Centre and the states. GoI's spending in the proportion of Budget estimates is already restrained to levels that were last seen during the peaks of the economic boom in FY07-08, the report said.

The report comes a day after the National Statistical Office (NSO) released the First Advance Estimates of National Income for financial year 2021-22. Accordingly, the estimates had said that India's economy is expected to clock a growth of 9.2 per cent in terms of real GDP for FY22. The NSO data had indicated that Real GDP' or 'GDP at Constant Prices' (2011-12) in the year 2021-22 rose to Rs 147.54 lakh crore from Rs 135.13 lakh crore.

The rising cases have led to various curbs instituted by state governments such as reduced capacity of markets, night and weekend curfews to check human mobility. As per Ind-Ra's estimates, GDP growth in Q4FY22 will now come in at 5.7 per cent year-on-year (YoY) which is 40 basis points lower than the agency's earlier estimate of 6.1 per cent. "For the entire FY22, the GDP is expected to clock a growth rate of 9.3 per cent YoY, 10 bp lower than our earlier estimate of 9.4 per cent," the agency said.

A total of Rs 18,900 crore worth Memorandums of Understanding (MoU) and investment proposals were signed on Monday at the ongoing first ever real estate summit held in the Union Territory of Jammu & Kashmir.