Strong recovery in India

GDP growth could be close to 8.5 percent in FY 2022

Global rating agency S&P Ratings (Standard and Poor’s) has said that despite a big fall in FY 2021, there are signs of a strong recovery in India. With this, India’s GDP growth could be close to 8.5 percent in FY 2022. However, the agency has said that there is a need to improve the weak Financial Sector and Labor Market. If this is not done then recovery may be affected. The agency has projected a 5% GDP contraction in the current financial year.

The rating agency has kept India’s Sovereign credit ratings unchanged at ‘BBB-‘. The agency has confirmed its unscheduled ratings on India’s foreign and local currency as ‘BBB-‘ for the long term and ‘A-3’ for the short term. Also, S&P Global Ratings has stated that India’s outlook is stable on long-term ratings. The rating agency said in a statement on Wednesday that the stable scenario reflects our expectation that India’s economy will improve after the COVID-19 epidemic is halted and the country will maintain its net external position.

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