Omicron a hurdle to Q4 GDP growth
Growth may slow down by 0.40% from previous forecast of 6.1%; It’ll further dent growth by 0.1% to 9.3% for FY22: Report
image for illustrative purpose
Mumbai: The Omicron variant spread will impact the January-March quarter GDP by 0.40 per cent and shave off 0.10 per cent from the FY22 growth, as many states resort to restrictions to limit infections, a domestic rating agency said on Thursday.
"Curbs in various forms such as reducing the capacity of market/market complexes and night/weekend curfews to check human mobility/contact have already started in several states, which are impacting economic activities," India Ratings and Research (Ind-Ra) said in a note.
The surge in cases seen over the last fortnight will have an adverse impact on the fourth-quarter GDP and the growth will come at 5.7 per cent during the quarter, which is 0.40 per cent lower than the earlier estimate of 6.1 per cent. For the entire FY22, the GDP is expected to clock a growth rate of 9.3 per cent, 0.10 per cent lower than what was estimated earlier.
The revision in estimates comes amid a massive surge in Covid infections across the country, especially in the metro.
