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Icra cuts its FY22 GDP estimate by 0.5%, sees
economy expanding by 10.5%
The agency now expects the economy to grow 10-10.5 percent in 2021-22, against the 10-11 percent
Domestic rating agency Icra on Tuesday cut its 2021-22 growth estimate by 0.5 percent on the upper end, as a
newer spate of lockdowns and restrictions get imposed in pockets to arrest the rising COVID-19 cases.
The agency now expects the economy to grow 10-10.5 percent in 2021-22, against the 10-11 percent estimated
Starting with Maharashtra, a slew of other pockets in the country like Delhi have been taking to localized
lockdowns to arrest the climbing COVID-19 cases, which derails economic activity.
"For Q1 FY2022 (April-June 2021), we had earlier expected a GDP expansion of 27.5 percent, boosted by the low
"With the unprecedented surge in cases and evolving restrictions, the pace of GDP growth in the ongoing quarter
may be tempered to 20-25 percent," the agency said.
The recent surge in COVID-19 cases has resulted in a dip in consumer confidence and reignited uncertainty
regarding the near-term outlook, it said.
In sequential terms, the momentum eased for domestic airlines' passenger traffic in March 2021, it said.
The report added that there are indications of a similar slackening in April 2021 in vehicle registrations, electricity
demand and generation of GST e-way bills, reflecting the impact of the rise in infections and growing restrictions.