Ind-Ra revises projection for economic contraction to 7.8% for FY21

Ind-Ra projections are close to the RBI's expectation of 7.5 per cent GDP growth rate in the current financial year

India Ratings has revised its projections for economic contraction to 7.8 per cent for 2020-21 from the earlier expectation of 11.8 per cent due to easing Covid-19 headwinds and better than expected numbers in the second quarter of the current financial year. The rating and research agency expected FY22 growth to be 9.6 per cent, mainly due to the weak base of FY21.
 

It said that while the headwinds emanating from Covid-related challenges are unlikely to go away till mass vaccination becomes a reality, the economic agents and economic activities have not only learnt to live with it, but are