"India Economic activity is picking up steadily with progressive growth rate" says Moody's

Moody Investors Service on Tuesday said that The Economic activity in India is picking up with the gradual easing of Caronavirus restrictions across India that were implemented in response to the Caronavirus second wave. As economies are gradually open across the world Indian economy is also picking its pace further upside to growth likely as they are progressively open. Moody's retained India's economic growth forecast for 2021 year at 9.6 percent and for the year 2022 it would be 7 percent.

Indian Economy growth

 

Moody's also expects the Reserve Bank of India to maintain the status quo and accommodative policy stance until the economic growth prospects improves durably so that the increasing number of emerging market central banks shift to neutral policy stance amid of growth momentum later this year and next year.

Indian economy has recorded 7.3 percent of GDP growth in 2020-2021 fiscal year, It was estimated that the GDP growth to be in double digits initially, but  a severe second wave of Caronavirus Pandemic has led to various agencies cut growth projections.

Moody's has projected a 9.3 % growth for the current fiscal ending March 2022. The Best Vaccination rates, Infections severeability extensions and mobility restrictions are the key determinants that led to economic recovery cycle of various countries. 

Moody's also estimates that the growth rate of G-20 economies will grow by 6.2 percent in 2021. There is a contraction of 3.2 percent last year followed by 4.5 percent growth in 2022 G-20 advanced exonomies will grow by 5.6 percent collectively in 2021. The emerging markets will collectively expand by 7.2 percent in 2021.