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HSBC Sees Virus Surge Slowing Indian Economic Growth This Year

  • Bhandari expects omicron impact less harsh than previous waves
  • Monetary policy normalization could be delayed due to Covid

New restrictions in India due to rising Covid-19 cases could lower the nation’s economic growth by about a quarter of a percentage point in the current fiscal year, according to HSBC Holdings Plc

“Economic cost will be there, but hopefully it will just be about a third or lower than the economic cost of previous waves,” HSBC economist Pranjul Bhandari said Friday in an interview with Haslinda Amin and Rishaad Salamat on Bloomberg TV. “For the full year ending March 2022, GDP growth could be 25 basis points lower than we had earlier estimated.”