S&P raises FY21 growth forecast to 7.7% contraction

“Rising demand and falling infection rates have tempered our expectation of Covid’s hit on the Indian economy. S&P Global Ratings has revised real GDP growth to negative 7.7 per cent for year ending March 2021, from negative 9 per cent,” S&P said.

India’s gross domestic product (GDP) fell 7.5 per cent in the July-September quarter, against a contraction of 23.9 per cent in the April-June quarter.

Earlier this month, Fitch Ratings also revised its growth forecast for India to (-)9.4 per cent, from (-)10.5 per cent, on signs of economic revival, while ADB said the economy is likely to contract 8 per cent as against 9 per cent earlier.