Business Economy

S&P still sees GDP shrinking by 9% in FY21

S&P Global Ratings on Monday retained its forecast of 9% contraction in the Indian economy for the current fiscal, saying even though there were now upside risks to growth, it would wait for more signs that COVID-19 infections had stabilised or fallen.

S&P, in its report on Asia Pacific, said the Indian economy would grow at 10% in the next fiscal.

“We project headline consumer price inflation just above the mid-point of the Reserve Bank of India’s [target] range of 2-6% through 2021. One-off factors should ease, including food-supply disruptions… But the pass-through to core inflation, currently near 6%, suggests inflation persistence remains a challenge,” S&P said.


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