InvestorQ : Why has UBS revised India’s GDP growth higher?
vidhya Laxmi made post

Why has UBS revised India’s GDP growth higher?

sarah Leo answered.
10 months ago

Swiss brokerage giant, UBS, has revised India’s GDP growth for FY22 higher from 8.9% to 9.5%. Explaining the 60 bps upgrade, UBS cited faster-than-expected recovery in the economy, rising consumer confidence and the revenge spending as the key reasons for this upgrade. UBS has pegged its estimates GDP growth at 7.7% for FY23 and at 6% for FY24.

However, UBS also expects some monetary tightening by the RBI. In fact, UBS sees the RBI hiking repo rates by 50 bps in FY23, possibly in two tranches. GDP growth in the Jun-21 quarter was 20.1% and the GDP growth for Sep-21 quarter will be announced on the last working day of November 2021. UBS India Activity Indicator showed 16.8% spike in Q2.