Moody’s cuts India’s growth to 9.6% in ’21

Moody’s Investors Service on Wednesday

slashed India’s growth projection to 9.6% for the 2021 calendar year from its earlier estimate of 13.9%, and said faster Covid-19 vaccination will be paramount in restricting economic losses to June quarter. The USbased rating agency said high-frequency economic indicators show that the second wave of Covid-19 infections hit India’s economy in April and May. With states now easing restrictions, economic activity in May is likely to signify the trough, it said in a report on India. “The virus resurgence adds uncertainty to India’s growth forecast for 2021; however, it is likely that the economic damage will remain restricted to the April-June quarter. We currently expect India’s real GDP to grow at 9.6 per cent in 2021 and 7 per cent in 2022,” Moody’s said. Flagging low inoculation rate, it said faster vaccination progress will be paramount in restricting economic losses in the country.