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Indian economy likely to grow 9% next fiscal: Credit Suisse

Other News Materials 10 December 2021 18:35 (UTC +04:00)

Swiss brokerage Credit Suisse expects the economy to continue to show positive surprises and record up to 9 per cent growth in the next fiscal.

For the current financial year too, the brokerage anticipates growth to be higher than the consensus forecast of 8.4-9.5 per cent, and printing in at around 10.5 per cent.

As a policy, Credit Suisse does not provide absolute growth numbers in its forecast.

However, an extrapolation of data available and projections indicate that economic growth could clip 9 per cent in 2022-23 period, which according to the brokerage is up to 400 basis points (bps) over the consensus numbers.

Neelkanth Mishra, the co-head of equity strategy for Asia Pacific and India equity strategist at Credit Suisse, told PTI that he expects meaningful upgrades to the GDP forecast as the economic recovery has surprised positively.

"We expect GDP getting an upgrade of 4 percentage points over the consensus for FY23 as output should get closer to the pre-pandemic trend than what is currently forecast.

"The economy is expected to continue to show positive surprises even though the recovery has so far been lop-sided but in the next three-six months most of low-income jobs should recover too," Mishra said on Thursday.

While warning that high energy prices could be a headwind, Mishra said the economy has the capacity to sustain faster import growth.

The pace of growth might moderate if imported energy prices (crude oil, gas, coal, fertiliser and palm oil) remain high.

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