Economy

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

Representational image.   | Photo Credit: Reuters

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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Printable version | Jan 19, 2021 2:24:09 PM | https://www.thehindu.com/business/Economy/sp-still-sees-gdp-shrinking-by-9-in-fy21/article33216188.ece

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