India's economic recovery losing steam, GDP growth may be under 9% in 2022 due to 2nd COVID wave: Survey

Kolkata: Amid a raging second wave of COVID-19 and subsequent restrictions on business activities imposed by several states, economic recovery is beginning to lose steam and the country’s GDP growth is likely to be below nine percent for the current fiscal, according to a survey. At least 80 percent of the respondents expect consumer demand for non-essential items as well as investment to be severely impacted due to the current COVID situation, the survey conducted by Care Ratings said. “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,” it said. According to the study, the majority of respondents expect the lockdown announced by several states will stay till May-end. Altogether, 54 percent of the people, who participated in the survey, believe that the lockdown is a solution to the current COVID-19 situation in the country, it said. Little more than three-fourth of the respondents feel that the current lockdown is not as stringent as the restrictions imposed last year, it added. Another rating agency CRISIL said India’s GDP growth is likely to drop to 9.8 percent in a moderate scenario, assuming the second wave of coronavirus disease peaks by May-end. The economic growth may slip further to 8.2 percent in the severe situation when the second wave of the pandemic peaks by June-end, it added.