Indian economy to grow by 12% in 2021 as private consumption & non-residential investments pick up – Moody’s
However, the US-based agency has warned that a second wave of Covid-19 infections still poses a major risk to the recovery of Asia’s third-largest economy. According to the outlook, herd immunity against Covid-19 is unlikely to be reached before the end of 2022.Also on rt.com India to cut Saudi oil imports amid escalating standoff over output & diversification drive
“India’s near-term prospects have turned more favorable following a stronger than expected December quarter, when GDP grew by 0.4% over the year following a 7.5% contraction in the September quarter,” Moody’s Analytics said in an update to its India Forecast.
According to the agency, domestic and external demand has been gradually improving since the pandemic-related restrictions were eased, boosting manufacturing output over recent months.
Last year, the prolonged lockdowns imposed to contain the coronavirus pandemic led to a 7.1% contraction of the world’s fifth biggest economy. The agency expects private consumption and non-residential investment to recover considerably in the next few quarters and strengthen domestic demand revival in 2021.Also on rt.com India wants to lure Tesla by offering cheaper production costs than China
The strong yearly growth comes partially as a result of a low base-year comparison, according to economist at Moody’s Analytics, Shahana Mukherjee.
“This forecast is equivalent to real GDP, in level terms, growing by 4.4% above pre-Covid-19 levels (as of March 2020) by the end of 2021, or equivalently, by 5.7% above the GDP level in December 2020 by the end of 2021,” the expert said.
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