New Delhi: The impact of the second wave of Corona has started showing on the economy as well. British brokerage firm Barclays has cut its GDP growth estimate for the financial year 2021-22 by 0.80 per cent. According to Barclays’ estimate, Indian GDP will grow at 9.2 per cent in the current financial year. The British brokerage firm has cut this in the estimate of Indian GDP growth due to the second wave of Corona epidemic. Barclays says the second wave turned out to be more dangerous than anticipated. Barclays lowered GDP growth estimates for the second time in this month. Earlier, Barclays reduced it from 11 per cent to 10 on 3 May.
According to Barclays chief (India) economist Rahul Bajoria, the slow pace of vaccination and the lockdown imposed in many parts of the country will also have a negative impact on the economy. There is also apprehension about the third wave in the country. Barclays estimates that if the third wave comes and due to which a lockdown was imposed for eight weeks, then the GDP growth could be just 7.7 percent.
Despite the RBI’s estimate of GDP growth of 10.5 per cent for the current financial year last month, analysts had kept their estimates slightly above 8.5 per cent to 10 per cent. It is also important to note here that the growth number will be higher because the economy had been shrinking by 7.5 percent in the last financial year. According to Bajoria, the second wave of corona in the country is now slowing down but due to the strict lockdown, its economic value will have to be paid more. Due to this, Barclays has cut its GDP growth estimate.
