SBI, citing recent government data, has estimated that nominal GDP (calculated at current prices, without adjusting for inflation) will grow at 17.6 per cent in 2021-22, compared to the rate recorded in 2010-11. second rate. This will take the overall GDP in 2019-20 to 1 per cent above pre-pandemic levels.
But is fueling hopes of a more sustained recovery in the months and years after March 2022, according to an in-house survey by India’s largest lender. This shows that all sectors of industry, the segment that accounts for a quarter of India’s economic output, are again borrowing, a trend that picked up from September 2021. There are also plans to add capacity in some large areas, indicating the expectation of future growth.
The SBI survey released on Wednesday shows that the credit growth seen in September-November 2021 is in line with capacity expansion plans in large sectors.
More than two-thirds of the survey respondents – which include textile, food processing, chemical and power companies – reported optimism in the business environment and supported capacity addition over the next two-three years. This level of optimism has not been seen during the pandemic.
New investment, new jobs
Gujarat, Maharashtra and Tamil Nadu, India’s three most industrialized states, accounted for over 40 per cent of all new investments announced in April-December 2021. Overall, new investments are expected to increase by 50 per cent in 2021-22. last year
This is led by private companies, which accounted for 70 percent of new projects, up from about 50 percent a year ago.
The top three sectors that announced new projects in the past nine months – roads, community services and real estate – accounted for a third of the total and are all major employers. Another reason to hope.
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