GDP growth forecast at 9.5%: CRISIL
STORIES, ANALYSES, EXPERT VIEWS
Rating agency Crisil’s MD & CEO Amish Mehta forecasts GDP growth for this fiscal at 9.5% but it expects some adverse impact in the fourth quarter due to the spread of Omicron variant.
He also expects the services sector to pick up decisively, leading to broad-based growth.
While highlighting the fact that there is easy liquidity in the market, Mehta says that through the pandemic, market shares have consolidated, which might have contributed to a resilient market. "Smaller companies have lost out due to supply chain disruptions, funding issues, and lack of business continuity plans. Another interesting aspect is that consumers seem to be focusing more on quality and reliability than price. That is why you see the top two or three companies in each sector doing well," he said.
Speaking on some of the emerging trends in the corporate sector, Mehta notes that companies have been investing to create robust and diversified supply chains, accelerating digitalisation on the customer-experience side, and automating processes since the pandemic broke out.
"The ongoing data explosion is also leading to greater demand for AI and machine language-based solutions. I am also seeing sustainability rapidly becoming an important agenda for corporates. Banks and FIs are integrating environmental, social and governance (ESG) factors into their risk frameworks for investment and lending decisions," he added.
