SBI Research on Friday lowered India’s growth rate estimate for the current financial year from 11 per cent to 10.4 per cent.
The total cost of vaccination is 0.1 per cent of GDP.
SBI Research on Friday lowered growth forecasts for the current fiscal from 10.4 per cent to 10.4 per cent, due to the continued rise in cases of corona virus infection in the country and the implementation of restrictions such as lockdown in several states. During the last 24 hours in India, more than 3.34 lakh cases of COVID-19 infection have been reported.
The report prepared by Bank’s Chief Economic Advisor Soumya Kanti Ghosh also suggested that rapid vaccination is economically cheaper than implementing full lockdown. According to the report, the total cost of vaccination is 0.1 percent against GDP, while the lockdown has already caused a loss of 0.7 percent of GDP.
Economy loss will be reduced by lockdown
The report states that from May 1, states are free to buy vaccines directly from manufacturers, so it is estimated that the cost of vaccination for 13 large states will be only 0.1 per cent of their total GDP. Ghosh said that this is much less than the economic loss to GDP due to the lockdown, which has already been 0.7 per cent.
Estimated loss of 1.5 lakh crore rupees
He further said that due to partial, local and weekend lockdowns in almost all the states, we are lowering our growth forecasts and the real GDP growth rate for FY 2021-22 can be 10.4 per cent and nominal GDP growth rate will be 14.3 per cent. He said the loss is estimated to be around Rs 1.5 lakh crore due to the limited lockdown, of which 80 per cent is held only by Maharashtra, Madhya Pradesh and Rajasthan and only 54 per cent by Maharashtra.
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