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India’s GDP growth could reach 9% in next financial year

India’s GDP growth could reach 9% in next financial year

India’s gross domestic product (GDP) growth could be as high as 8.8%–9% in the current financial year, the agency Care Ratings is predicting.

It also said that the country’s economy had shrunk by 7.3% in the 2020-21 financial year. It attributed the expected growth in the 2021-22 financial year to very low growth rates in the previous financial year.

In a report it said the main drivers of the economy would be agriculture and industry; however, it warned that the services sector would see slower growth as the latest lockdown in India impacted on hotels and restaurants, tourism, shopping malls and entertainment in particular.

Care Ratings’ report pointed out that, despite various government and national bank initiatives to boost the economy, there was still a shortfall in demand as consumers maintained a cautious approach to spending.