Stable economic outlook

India still needs careful policy management

High-frequency data suggest that the Indian economy continues to recover from the pandemic-induced disruption. Encouraged by the ongoing economic recovery, Moody’s Investors Service changed its outlook on India’s sovereign ratings from negative to stable on Tuesday. It has revised its growth forecast to 9.3 per cent for the current fiscal year and 7.9 per cent for the next year. In Moody’s opinion, the recovery is getting entrenched, and the risks emanating from banks and non-bank financial institutions are far lower than what the agency had anticipated. Besides, India’s external position is fairly strong with a record accumulation of foreign exchange