India likely to grow 13.7% next year; fiscal position weak: Moody's

Indian affiliate Icra expects considerable rebound in economic growth in FY22 on the back of higher central govt spending, pick-up in consumption

The Indian economy is expected to grow 13.7 per cent in the financial year 2021-22 (FY22), registering a strong rebound from a 7 per cent contraction this fiscal year, said Moody’s on Thursday, adding the country’s fiscal position would remain weak in 2021, posing a key credit challenge.
 
Moody’s had in November last year projected the economy to contract 10.6 per cent in FY21 and return to growth of 10.8 per cent in FY22.
 
The upgrade in growth forecast comes on the back of normalisation of activity and growing confidence in the market with the rollout of Covid-19