GDP growth is likely to be below nine per cent for the current fiscal: Survey
Updated: May 17, 2021 08:31:24am
GDP growth is likely to be below nine per cent for the current fiscal: Survey
New Delhi, May 17 (KNN) Amid lockdowns and restrictions across the country due to the second wave of COVID-19, economic recovery is beginning to lose steam and the country’s GDP growth is likely to be below nine per cent for the current fiscal, said a survey by Care Ratings.
According to the survey, at least 80 per cent of the respondents expect consumer demand for non-essential items as well as investment to be severely impacted due to the current COVID situation. Almost the same proportion of respondents believe the NPA situation to worsen in the coming months.
“The economic recovery is beginning to lose steam with infection rates scaling record highs. Almost seven out of 10 respondents expect GDP (growth) to be below nine per cent for FY22,” the survey said.
The survey further states that the majority of respondents expect the lockdown announced by several states will stay till May-end.
54 per cent of the people, who participated in the survey, believe that the lockdown is a solution to the current COVID-19 situation in the country while 3/4th of the respondents feel that the current lockdown is not as stringent as the restrictions imposed last year.
''A large majority of the respondents (88 per cent or 266 out of 304) expect the demand for non-essentials to be affected in the first quarter of FY22 as against the 11 per cent (32 out of 304) who responded in negative,'' the survey added.
Likewise 77 per cent (236 out of 305) believed that the investment demand in the economy will be affected while 17 per cent (51 out of 305) stated that it will not be affected. Overall 6 per cent (18 out of 305)were not sure of the impact on the investment.
As per the survey, a large proportion of the respondents from the Micro, Small and Medium Enterprises (MSMEs) sector i.e 72 per cent felt that the restrictions would cause labour supply shortages. On the contrary, 16 per cent respondents do not foresee labour shortages and 11 per cent were unsure.
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