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.