According to an India Ratings report, India's GDP growth is likely to see a 10 basis point hit in FY22 due to the fast spreading Omicron variant.

The report says, curbs in various forms such as reducing the capacity of market/market complexes and night/weekend curfews to check human mobility/contact which have already started in several states, are impacting economic activities.

The surge in cases seen over the last fortnight will have an adverse impact on the fourth-quarter GDP and the growth will come at 5.7 percent during the quarter, which is 0.40 percent lower than the earlier estimate of 6.1 percent. For the entire FY22, the GDP is expected to clock a growth rate of 9.3 percent, 0.10 percent lower than what was estimated earlier, the report added.

To discuss the report CNBC-TV18 spoke to Sunil Sinha, Director & Principal Economist at India Ratings & Research.

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With text inputs from PTI.

First Published:Jan 7, 2022 1:10 PM IST