S&P sees indications of strong rebound in Indian economy after Q1

S&P retains 9.5% FY22 growth projection for India

Rating agency Standard & Poor’s (S&P) on Tuesday said high-frequency indicators suggest a strong rebound during the July-September quarter after a steep contraction in activity in the previous three months on the back of a severe Covid-19 wave. 

However, it warned that domestic macro indicators remained weak, though recovering.

In its latest outlook on Asia Pacific, the agency cautioned against the impact of faster-than-expected tapering, saying it could cause capital flow risks as monetary policy in India remains highly accommodative with real interest rates in negative territory.

It expected a hike in the policy rate by the Reserve Bank