Moody's ups India growth estimates to 9.5% in CY2022 on stronger recovery

Rating agency Moody’s on Thursday revised India’s economic growth estimates in CY2022 upwards to 9.5 per cent from 7 per cent on stronger than expected recovery after lockdown in 2020 and Covid-19's Delta wave in 2021. It maintained a forecast for 5.5 per cent growth in CY2023.

In its update on Global Macro Outlook 2022-23 today, Moody's said sales tax collection, retail activity and Purchasing Managers Index suggest solid momentum. However, high oil prices and supply distortions remain a drag on growth for India.

The speed of the recovery from the first lockdown-led contraction in Q2CY2020, and subsequently in Q2CY2021