Second Covid-19 wave heightens downside risks to India's GDP, says S&P

The country is already facing a permanent loss of output versus its pre-pandemic path, suggesting a long-term production deficit equivalent to about 10% of GDP

Rating agency Standard & Poor's (S&P) on Wednesday said the second Covid-19 wave, which has engulfed India, brings uncertainty and a drawn-out outbreak will impede India's economic recovery.
 
This may need a revision of the base assumption of 11 per cent growth over fiscal 2021-2022, particularly if the government is forced to reimpose broad containment measures, according to S&P.
 
It said the country is already facing a permanent loss of output compared to its pre-pandemic days, suggesting a long-term production deficit equivalent to about 10 per cent of gross domestic product (GDP).
 
In addition to the substantial