S&P Keeps Growth Forecast Unchanged At 9.5% For 2021-22

S&P Global Ratings has kept economic growth forecast for India unchanged at 9.5 per cent for the current financial year (2021-22).

Economy had contracted by 7.3 per cent in 2020-21, mainly impacted by the Coronavirus pandemic induced lockdowns that hit economic activities badly. Though the gradual lifting of restrictions later on helped the economy to some extent, in growing.

"India is learning to live with the virus. Following the peak in COVID-19 cases around mid-year, the stringency index has declined, mobility has recovered, and consumer and business confidence has improved,” S&P Global Ratings said in its report.

Rising inflation is a pressure point, unlike elsewhere in emerging Asia. But external demand continues to support growth, it noted further.

"We leave our growth forecast unchanged at 9.5 per cent for the fiscal year ending March 2022 and 7.8 percent for the year ending March 2023," it said.