Decline in India's economic growth rate due to slow pace of vaccination

MUMBAI: India Ratings has downgraded India's economic growth forecast for the current financial year from 7.50 per cent to 7.50 per cent. Corona is seeing a strong recovery after the second wave, but the target of vaccinating the entire youth class of the country by the end of the current year may not be achieved.

Given the current pace of vaccination, it is unlikely that the entire young population will be vaccinated before the end of December 31, 2021, according to a report by the rating agency.

In an earlier estimate, the rating agency said the recovery was based on progress in vaccination.

If more than 5 per cent of the young population is to be vaccinated by the end of the year, 3 lakh people will have to be vaccinated daily from August 15. Considering the second wave and the pace of vaccination, we have reduced the GDP estimate to 7.50%.

Some high frequency indicators indicate recovery is faster than expected. With the monsoon becoming active, kharif sowing has also gained momentum and export volume has also seen a surprising increase. The March quarter saw an increase in private final consumption expenditure after six months. This increase is expected to be sustained.