Indian economic system to develop by 13.7% in subsequent fiscal, says Moody’s

New Delhi, February 25

The Indian economy is expected to clock a growth of 13.7% in FY’22, registering a strong rebound from a 7% contraction this fiscal, on the back of normalisation of activity and growing confidence in the market with the rollout of Covid vaccine, Moody’s Investors Service said on Thursday.

Moody’s had in November last year projected Indian economy to contract 10.6% in the current fiscal and return to growth of 10.8% in 2021-22 fiscal.

India Credit Outlook 2021

“Our expectation in current fiscal ending March 2021 is for a contraction of 7% significant improvement from our … (earlier) forecast of contraction of over 10%. We try to incorporate some of the unexpected pickup in activity that we have seen recently.

“For the year following that we expect a rebound of 13.7% that reflects largely normalisation of activity, a pronounced base effect. Recovery of activity reinforced by some degree of rollout of vaccine, and growing confidence in market that things are getting more back to normal,” Moody’s Investors Service associate MD Gene Fang said in a conference held by Moody’s and its India affiliate ICRA on India Credit Outlook 2021.

Stating that recession in India has ended, ICRA principal economist Aditi Nayar said Indian economy could clock a 0.3% growth in the October-December quarter of the current fiscal. — PTI

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