Moody's pegs India's GDP growth at 9.3% by FY22, expects economy to rebound strongly by next fiscal

The rating agency predicts a GDP of 7.9% by the end of March of the fiscal year 2023.

Nov 26, 2021 11:11 IST India Infoline News Service

In its latest note, Moody's Investors Services said that India's economic growth is seen to rebound strongly in the next fiscal year. Moody's forecasts the country's GDP at 9.3% in 2022.

While the rating agency predicts a GDP of 7.9% by the end of March of the fiscal year 2023.

Sweta Patodia an analyst at Moody's outlined that India's sustained recovery in economic activity will be supported by a rising rate of vaccination against the coronavirus disease (Covid-19).

Moody's highlighted that consumer demand, spending and manufacturing activity is recovering following the easing of pandemic restrictions. These trends, including high commodity prices, will propel significant growth in rated companies’ EBITDA over the next 12-18 months.

Further, Moody's mentioned that a few other factors that will boost India's economic growth - are growing government spending on infrastructure to support demand for cement and steel. Meanwhile, new investments will be aided by rising consumption, domestic manufacturing and benign funding conditions. 

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