Economy Likely To Grow By 8.7% In Current Fiscal: Report

Domestic brokerage firm Motilal Oswal trimmed its projection of the real gross domestic product (GDP) growth for the current fiscal from 11.1 per cent to 8.7 per cent.

The Indian economy is likely to grow by 8.7 per cent in the current fiscal year 2021-22, projects domestic brokerage firm Motilal Oswal. The firm trimmed its projection of the real gross domestic product (GDP) growth for the current fiscal from 11.1 per cent to 8.7 per cent. However, the economic growth forecast for the next fiscal year 2022-2023 was revised from four per cent to 5.4 per cent. (AlsoRead: Economy May Have Shrunk 12% In June Quarter Due To Covid Second Wave: Report ) The economy contracted by 7.3 per cent in the previous financial year 2021, recording its worst-ever performance in over four decades. In the first quarter of fiscal 2021, the economy contracted by a massive 23.9 per cent, and 7.5 in the second quarter resulting in a technical recession. The gradual easing of lockdown norms lead to recovery in the subsequent third and fourth quarters in the previous financial year. However, the recent surge in industrial metals, as well as agricultural commodities, is likely to have a much larger impact on the wholesale price index or WPI over the consumer price index (CPI), according to Motilal Oswal. The real GDP is a measure of a country's output in terms of the value of indicators such as goods and services, government spending, investments, and exports. The real GDP takes the nominal GDP and adjusts for inflation or deflation accordingly, by comparing and converting prices to a base year's prices.