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India to Grow at 13.7% in FY 22: Moody’s

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Global rating agency MoodOn February 25, 2021 Moody’s projected India’s growth at 13.7% for FY 22. Earlier it was estimated at 10.8%. The revision has been made due to normalisation of activity and growing market confidence in the market with the introduction of COVID-19 vaccines.

i.Moody’s also projected that Indian economy will contract by 7%(-7%) in FY21, which is lower than the previous estimate of -10.6%.

ICRA Projected India’s Economy to grow 10.5% in FY-22:

i.ICRA Limited (formerly Investment Information and Credit Rating Agency) expects the Indian economy to contract by 7%(-7%) in FY 21. The growth will be rebounded to 10.5% in FY 22.

Note: ICRA also expects a 0.3% growth in 3rd quarter (October-December) of FY 21.


As per Moody’s, the fiscal deficit for FY2021 and FY2022 of the central government is required to be low than projected, supported by stronger revenue generation in the 4th quarter of FY2021 and higher nominal GDP growth in fiscal 2022.

Other Recent Estimates:

i.RBI Projects India’s Gross Domestic Product (GDP) growth at 10.5% for FY 22. It projected GDP for FY 21 as -7.5%

ii.Nomura projects India’s GDP at 13.5% in FY22. The real GDP to contract by 6.7% in FY21.

iii.India Ratings and Research (Ind-Ra)Ltd estimated that India’s real GDP will bounce back to 10.4% in FY22. Earlier, Ind-Ra had projected the GDP for FY 21 as -7.8%.

iv.Ecowrap report of the State Bank of India (SBI) estimated that India’s GDP for FY 21 will contract by 7%(-7%) from -7.4%  projected earlier. The GDP growth in FY22 will remain at 11%.

Recent Related News:

The International Monetary Fund (IMF) in its latest World Economic Outlook, titled ‘Policy Support and Vaccines Expected to Lift Activity’ has projected India’s Gross Domestic Product (GDP) to contract by 8%(-8%) in FY20-21.

About Moody’s:
Headquarters– NewYork, United States
President & CEO– Robert Fauber(Succeeds Raymond McDaniel, Jr.)

About ICRA Ltd:
Registered Office– New Delhi, Delhi
MD & Group CEO–  N. Sivaraman