The Ministry of Finance estimates that GDP will grow by 19% in 2022

New Delhi, 20 September 2020 Sunday

The finance ministry has projected India's nominal GDP to grow at 19 per cent in FY2021-22. Nominal GDP is one such estimate.

In which the value of goods and services produced in a year is calculated on the basis of market values, then the value that emerges is called nominal GDP.

NK Singh, chairman of the 15th Finance Commission, said there were many speculations about this. The chief economic adviser said in his presentation that it could rise to 19 per cent, while some also said it could reach 21 per cent.

In the first quarter of this financial year, the nominal GDP fell by 22.6 per cent to Rs. 38.08 lakh crore. The figure was Rs 49.18 lakh crore in the same period last year.

Chief Economic Adviser Krishnamurthy Sabramaniam said that despite the decline due to the Koro epidemic, many sectors are on the path to recovery than before.

"Whenever you consider certain reforms, which are done on privatization towards agriculture, labor, they will all together increase productivity in the economy and therefore help bring back growth," he said.

Moody's said, "Deep pressure on the economy and financial system could further weaken the country's economic strength. This could increase the pressure on credit. Moody's said it estimates that the Indian economy will shrink by 11.5 per cent in 2020-21."

Moody's has said that the Indian economy will grow by 10.6 per cent in the next financial year 2021-22. Earlier, global rating agency Fitch had projected a 10.5 per cent decline in the Indian economy in the current financial year.

Local rating agencies Crisil and India Ratings have forecast a 9 per cent and 11.8 per cent decline in the Indian economy in the current financial year, respectively.