'Economy To Rebound Strongly': India's GDP To Grow At 9.3 Per Cent In FY22, Says Moody's

Moody’s Investors Service has projected that India will be witnessing a GDP growth rate of 9.3 per cent and 7.9 per cent in FY22 and FY23 respectively.

Moody’s analyst Sweta Patodia has claimed that steady progress in vaccination against Covid-19 will bring about a sustained recovery in the economic activity of the country.

“Consumer demand, spending and manufacturing activity are recovering following the easing of pandemic restrictions,” Patodia was quoted in a report by Economic Times.

Improved vaccination coverage has apparently led to stabalisation in consumer confidence. Along with that, India’s insistence on domestic manufacturing and amiable conditions for funding are projected to support the new investments.

The Reserve Bank of India (RBI) has maintained an accommodative stance throughout whilst also ensuring record low interest rates. Moody’s believes that these low rates will be cutting down the funding costs as companies will be refinancing higher-cost debt.

It will also make way for new capital investment, in lines with growing demand, though higher inflation continues to remain a threat.