India’s GDP growth is expected to be at (-) 7.4 per cent in FY21 on better than projected recovery, said a SBI research report, upgrading its earlier forecast of (-) 10.9 per cent.

The report also believes that it would take seven quarters from the fourth quarter of FY21 for GDP to reach the pre-pandemic level in nominal terms.

“We now expect GDP decline for the full year (FY21) to be in single digits at 7.4 per cent (compared to our earlier prediction of () 10.9 per cent), aligned with RBI and markets’ revised forecasts post Q2,” SBI said in its research report – Ecowrap.

It said the revised GDP estimates are based on SBI ‘Nowcasting Model’ with 41 high frequency indicators associated with industry activity, service activity, and global economy.

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