British brokerage Barclays has cut India’s growth estimate for the current fiscal by a sharp 80 basis points to 9.2 per cent, pointing out that the economic impact of the second wave of infections has been deeper than initially expected.

The lower growth forecast also comes on the back of the slow pace of vaccinations in India and lockdowns across many states. Barclays is not alone as several analysts have pruned their growth estimates for India because of the ongoing second wave. While the Reserve Bank of India (RBI) retained its earlier forecast that the real GDP growth will be 10.5 per cent, observers feel that it may also lower this estimate at its next meeting in June.

However, there are others who feel that with cases on the wane, states may opt for gradual unlocking from next month and this could lead to a pick up in economic activity.