India’s GDP likely to grow by 8.1% in Q2 of FY12: SBI report
Highlight
- The estimated growth rate of 8.1 per cent in the second quarter of FY12 is the highest growth rate among all economies.
- The average GDP growth of 28 selected economies has come down to 4.5% in Q3 (2021).
- The report said five agricultural reforms that could function as efficient even without these bills.
According to a research report by SBI, the country’s GDP growth rate is likely to be around 8.1 percent in the second quarter of the current financial year and in the range of 9.3-9.6 percent during the financial year 2022.
The economy grew by 20.1 per cent in the first quarter of FY22. For FY 2022, RBI has projected real GDP growth at 9.5 per cent – 7.9 per cent in Q2, 6.8 per cent in Q3 and 6.1 per cent in Q4.
“As per the nowcasting model of SBI, the projected GDP growth for Q2 of FY12 will be 8.1 per cent, with an upward bias. The full year (FY22) GDP growth is now projected to be our 8.5-K. The earlier estimate has been revised up to 9.3-9.6 per cent. 9 per cent,” said the research report, Ecowrap.
The estimated growth rate of 8.1 per cent in the second quarter of FY12 is the highest growth rate among all economies.
The average GDP growth of 28 selected economies declined to 4.5 percent in Q3 (2021) compared to 12.1 percent.
Also at an annual rate of 9.3-9.6 per cent, the country’s real GDP growth will now be 1.5-1.7 per cent higher than the pre-pandemic level of FY20.
On 19 November, Prime Minister Narendra Modi announced that the government would repeal three agriculture laws. He also said that Zero Budget would be a tool for taking decisions on matters including promotion of farming, scientifically changing the cropping pattern keeping in mind the changing needs of the country and making MSP (Minimum Support Price) more effective and transparent. Committee will be formed.
The report also noted that five agricultural reforms that could function as efficient even without these bills.
“Firstly, instead of MSP as a price guarantee which farmers are demanding, the government may insert a quantity guarantee clause for a period of at least five years that the procurement percentage of the crops (currently being purchased). has been at least equal to the previous year’s percentage,” the report said.
It also suggested exploring the possibility of converting the MSP into the floor price of the auction on the National Agricultural Market (eNAM).
In addition, the report said efforts should continue to strengthen the APMC market infrastructure and establish a contract farming institution in India, which would have exclusive powers to oversee value discovery in contract farming. It also proposed to ensure a symmetric procurement across the states.
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