Moody’s Investors Service revised India’s growth forecast for FY21 to 9.3 percent from 13.7 percent (February 2021’s forecast).
- It has increased the growth projection for FY22 to 7.9 percent from 6.2 percent.
i.It has a ‘Baa3’ rating on India with a negative outlook, due to the barrier over economic growth, high debt and weak financial system due to COVID1-19.
ii.The rating agency also hiked its expected general government fiscal deficit to 11.8 percent of GDP in FY22, compared with the previous forecast of 10.8 per cent.
iii.Moody’s estimation is closer to the IHS Markit’s growth prediction, which had predicted 9.6 per cent growth in FY22.
Care Ratings Cuts India’s GDP to 9.2% for FY22:
The domestic rating agency, Care Ratings revised its GDP growth forecast for FY22 to 9.2 percent from 10.2 percent.
i.This is the 4th revision by the rating agency in its GDP growth forecast for FY22 since March 2021.
ii.It has stated the growth of 3.3-3.5 percent in the agriculture sector, 9.5-10 percent in the industry sector, and 9-9.5 percent in the services sector.
iii.It projected a 10.2 percent increase in the GVA (gross value added) from Rs 124.11 lakh crore (FY21) to Rs.136.82 lakh crore (FY22).
iv.Due to the lockdowns, it reported a 0.8-1 percent loss in GDP for FY22 (earlier estimation is 11-11.2 percent).
Recent Related News:
Moody’s Analytics, a subsidiary of Moody’s Corporation, predicts India’s GDP to grow by 12 % in 2021 following a contraction of 7.1%(-7.1%) in 2020, and in an earlier estimate last November, it had said India’s GDP will grow at 9% in the calendar year 2021.
About Care Ratings:
Establishment – April 1993
Headquarters – Mumbai, Maharashtra
MD & CEO – Mr. Ajay Mahajan
Headquarters – New York, United States
President &CEO – Rob Fauber