The Union Ministry has estimated India's GDP to grow 9.2 percent this fiscal amid soaring concerns over the Omicron virus infection. The growth in the gross domestic product (GDP) of 9.2 percent in April 2021 to March 2022 fiscal (FY 2021-22) given by the National Statistical Office (NSO) in its first advance estimate compares with the 9.5 percent expansion forecast by the Reserve Bank of India (RBI) last month. The construction sector is likely to clock 10.7 percent in FY22 with the government’s increased focus on infrastructure projects and smart recovery of demand expected for residential and commercial segments. Logistics, warehousing, and data centres are also expected to fuel demand forward, informed Chief Economist and Executive Director - Research & REIS, JLL India, Samantak Das. The financial, real estate, and professional services segment is expected to see a 4 percent overall growth in FY22 versus the 1.5 percent contraction.
The estimated GDP growth rate of 9.2 percent released by the statistics ministry is on the optimistic side considering the evolving situation of the pandemic. Though the estimate is slightly lower than what was projected by the Reserve Bank of India, it is still much better than compared to the contraction of 7.3 percent recorded during FY21, said Anuj Puri, chairman, Anarock Group. “The construction sector contribution towards the GDP has been significant with a 10.7% increase in the contribution towards the GVA during this year. Increase in the construction activity and initiation of large-scale infrastructure projects are going to be significant contributors to the GDP,” Puri added.
According to Vivek Rathi, Director - Research, Knight Frank India, the third wave and Omicron variant across the world has increased caution but policy and business response this time is expected to be nuanced. Mainly led by strong Investment activity and followed by consumption growth, the FY22 GDP advance estimate has arrived at 9.2 percent. With improved pandemic awareness and technology-led preparation, business and consumer confidence are high and government response on pandemic is graded and more localized now.