Moody’s pegs India’s GDP growth rate at 9.3 per cent for current fiscal year, 7.9 per cent for FY 2022-23

Moody’s pegs India’s GDP growth rate at 9.3 per cent for current fiscal year, 7.9 per cent for FY 2022-23 Contraction workers (Photo Credit: PTI)

New Delhi: Moody’s Investors Service on Tuesday (June 1)  said that it expects India to grow at 9.3 per cent in the current fiscal ending March 2022. The ratings agency also said that for the Financial Year 2023, the country will record a growth of 7.9 per cent. “The reimposition of lockdown measures along with behavioural changes on fear of contagion will curb economic activity, but we do not expect the impact to be as severe as during the first wave,” said Moody’s in a statement.

The ratings comes a day after Indian government’s data showed that the economy had contracted by 7.3 per cent in 2020-21.

“We expect a decline in economic activity in the April-June quarter, followed by a rebound, resulting in real, inflation-adjusted GDP growth of 9.3 per cent in the fiscal year ending March 2022 and 7.9 per cent in fiscal 2022-23,” added Moody’s.

It added that the the second wave of COVID-19 pandemic will further deepen the disastrous consequences that were left by the first wave.

The COVID-19 pandemic has already caused massive damage to the economically vulnerable sections who were just beginning to recover.

However, the second wave which let to a series of lockdown in the country shut down any chance of recovery.

The ratings agency di add that overall real GDP growth will average around 6 per cent for the financial year.

Meanwhile,Indian economic growth contracted to (-) 7.3 percent in the financial year 2020-21, down from 4.0 per cent in 2019-20, the data released by the Government of India showed on Monday.

The Government data released shows the impact on the economic growth of India, as compared to previous financial years, before lockdowns and other restrictions were imposed after the second wave of COVID-19.

In February, the Centre pegged the GDP contraction at 8 per cent for the FY 2020-21.

With inputs from PTI

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