Moody’s revised India’s growth forecast

Moody’s has increased the growth forecast for India, with the revised estimated growth for next fiscal year to be 13.7%. Earlier, the growth for next fiscal year was estimated to be 10.8%. The upward revision is backed by expectations of growth in economic activities as the vaccination drive is in action.
The revised estimated growth in GDP for current fiscal year is -7%,up from -10.6% earlier. As per the company, the values of fiscal deficit of the central government for FY21 and FY22 are expected to be less than the projections. Gene Fang, associate managing director at Moody’s Investors Service, says, “Still, wide fiscal deficits combined with lower real and nominal GDP growth over the medium term will constrain the government’s ability to reduce its debt burden.”