Research Overview

The Indian economy was forecast to record an 11.3% growth in 2021-22, based on prevailing conditions in March 2021. Since then, however, the economic outlook has changed with the start of the 2nd wave of COVID-19. Consequently, a 9.4% growth is anticipated in 2021-22. However, this forecast is subject to changes based on the evolution of the 2nd wave, government responses to the same, and the performance of the economy in the post-lockdown period.

This Frost & Sullivan research service is designed to provide insight into India’s growth trajectory for the next 4 quarters and shed light on the implications of the 2021-22 Budget, the recently launched Production Linked Incentive (PLI) Scheme, and ongoing and impending structural reforms, among other aspects that will highlight the country's near-term economic prospects and outlook.

One of the important ramifications of the global pandemic has been the shift in global supply chains. China’s position as a go-to manufacturing location has weakened, and producers are looking to diversify outside the country. India has emerged as an alternative, and this will fuel the government’s vision of boosting domestic production. In this regard, the government launched the PLI Scheme in 2020, which aims to attract foreign supply chains. However, India’s attractiveness as an investment destination has been dented in the short term due to a 2nd wave of the virus; nevertheless, investor interest in the country will grow as the number of cases reduces, as central and state governments offer incentives to support manufacturing, and as structural reforms are implemented.