Expect rapid recovery in economy, S&P raises GDP growth rate for FYY21

S&P boosts GDP growth rate

Amid a nationwide outbreak, the country’s economy has seen a deep decline in GDP by about 23.9%, but the September quarter has seen an improvement in the economy.

  • News18
  • Last updated:
    December 15, 2020, 9:50 PM IST

New Delhi: Amid a nationwide outbreak, the country’s economy has seen a deep decline in GDP by about 23.9%, but the September quarter has seen an improvement in the economy. India’s growth rate has been better than expected. Meanwhile, global ratings agency S&P Global on Tuesday upgraded India’s growth forecast for the current financial year 2021 from 9 per cent to (-) 7.7 per cent.

The statement was issued by S&P

A statement has been issued by S&P. According to the statement, rising demand and declining infection rates have changed our outlook on the Indian economy. S&P Global Ratings has raised real GDP growth from negative 9% to negative 7.7% for the fiscal year ending March 2021.

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Let me tell you that S&P has projected a GDP growth rate of 10 per cent in the next financial year 2021-22. The rating agency says India has learned to live with the virus. Apart from this there has also been a significant reduction in cases of infection.

This was in the April-June quarter

The rating agency estimates that the country’s economy will continue to grow at a similar pace in the next quarter. The agency estimates that growth could reach 10% in the next financial year. India’s GDP was 23.9 per cent in the April-June quarter.

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Sean Roach, chief economist at S&P Global Ratings Asia-Pacific, said, “India’s manufacturing sector is improving rapidly on the lines of most Asia-Pacific economies.”

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