India to grow at 11% in FY22: S&P

NEW DELHI: S&P Global Ratings on Thursday said the Indian economy is projected to grow at 11% in the current fiscal, but flagged the “substantial” impact of broader lockdowns on the economy.

In its report on AsiaPacific Financial Institutions, S&P said the control of Covid-19 remains a key risk for the economy. New infections have spiked in recent weeks and the country is in the middle of a second wave. “Our forecast growth of 11% for India in 2021 is followed by a 6.1%-6.4% forecast increase for the next couple of years... Some targeted lockdowns have already been implemented and more will likely be needed. The impact of broader lockdowns on the economy could be substantial, depending on their length and scope,” it said. As per official estimates, the Indian economy contracted 8% in 2020-21, which ended March 31, 2021.