Despite food inflation and covid instabilities, India is expected to post strong economic growth and is likely to achieve a positive bounce-back, S&AP Global rating said.
It further asserted Indian economy to grow 9.5 percent in the current fiscal years, followed by 7 percent growth in the next year. S&P’s director Andrew Wood said, India’s external position has strengthened post the outbreak of pandemic last year and has been gathering forex reserves at a record pace.
“India’s external position is very strong and this is quite supportive of India’s sovereign rating”, said S&P Global Rating director Andrew Wood. The director also said India’s nominal GDP growth is going to be important in order to prevent more erosion of fiscal settings.
Furthermore, speaking at the India Credit Spotlight 2021, S&P economist Vishrut Rana said, India will continue to have strong economic growth in the upcoming Q3 and Q4 of the current year. The Indian economy in April-June 2021 grew by 20.1 percent against 1.6 percent in March of the previous year.