India's economy to grow at 10% in FY22, says S&P Global Ratings

Rating agency S&P Global Ratings stated that India is on track to recovery, stated a news report. Like other economies, Indian economy was hit by the COVID-19 pandemic.

South Asia’s largest economy could grow 10 per cent in fiscal 2022, the ratings agency predicted in a report.

“The Indian economy is on track to recover in fiscal 2022,” the report said. “Consistently good agriculture performance, a flattening of the Covid-19 infection curve, and a pickup in government spending are all supporting the economy.”

This recovery in the financial year 2021-2022 is led by flattening of the COVID-19 curve, rise in government spending and better performance from the agriculture sector and slow recovery of other sectors.

Meanwhile, RBI governor during the bi-monetary policy said, “GDP growth is projected at 10.5 per cent in FY 2021-2022 in the range of 26.2 per cent to 8.3 per cent in H1 and 6 per cent in Q3 of the next fiscal." The prediction of the agency is also in the same lines.

The global rating agency stated that for India to continue its growth trajectory, it will have to look at vaccinating its 1.4 billion people.

The report stressed that the possibility of early withdrawal of global fiscal stimulus also poses a major risk to India’s recovery.

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