Economy / Moody's raises India's GDP forecast for FY21 to -10.6% from -11.5%

Moody's Investors Service has raised India's growth forecast for 2020-21 to a 10.6% contraction, compared to its previous estimate of an 11.5% contraction. It also revised upwards its expectation for GDP growth rate to 10.8% for 2021-22 from 10.6% earlier. The rating agency said the government's latest stimulus measures were aimed at increasing manufacturing competitiveness and creating jobs.

Vikrant Shekhawat : Nov 19, 2020, 08:10 PM
New Delhi: Moody's Investor Service on Thursday revised the contraction rate of India's FY21 GDP to (-) 10.6 per cent from an earlier estimate of (-) 11.5 per cent.

The revision comes days after the Centre announced new stimulus measures.

Besides, Moody's revised the forecast for the next financial year ending March 2022.

It now estimates a growth of 10.8 per cent from a rise of 10.6 per cent, which was predicted earlier.

"The latest measures (stimulus) aims to increase the competitiveness of India's manufacturing sector and create jobs, while supporting infrastructure investment, credit availability and stressed sectors," Moody's said.

"As such, they present potential upside to our current growth forecasts, a credit positive."

According to the ratings agency, consumer confidence in India remains relatively low amid a continued elevated number of daily new coronavirus cases, "although this has come down from a peak in September".