Citi becomes the latest to downgrade India's FY22 gross domestic product (GDP) forecast. Samiran Chakraborty, Managing Director and Chief Economist, India for Citigroup, has lowered his projections for growth for the year because of second wave of COVID-19.

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The latest downgrades to India’s current year growth comes from Citi. The brokerage house believes that for the current year, India’s gross value added (GVA) will be around 9.2 percent versus its original projection of 11.6 percent. HSBC too had cut the expected GVA number to 7 percent versus its earlier projection of 10.2 percent.

Citi is expecting 2.4 percent cut, HSBC is expecting 3.2 percent cut and Nomura is expecting 1.8 percent cut in its GDP forecast for FY22.

Citi is pointing out that the economic activity in April and May is 11.5 percent below the previous quarter, that is Q4 but in 2020 - April, May, June last year was 70 percent below the previous Q4. So, although there are restrictions and higher COVID, people have learnt to work around it.

Watch the accompanying video of CNBC-TV18’s Latha Venkatesh for more details.

(Edited by : Bivekananda Biswas)

First Published:May 17, 2021 4:33 PM IST