InvestorQ : How much is India’s GDP expected to grow in the year 2021?
rhea Babu made post

How much is India’s GDP expected to grow in the year 2021?

Answer
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3 months ago


Moody’s expects that the immediate and the lag impact of the Coronavirus outbreak will ensure around 0% growth in GDP in fiscal year 2020-21.

While the first two quarters are likely to be washed out, the growth is expected to bounce in the third and the fourth quarters. However, Moody’s expects a bounce back to 6.6% growth in GDP in FY22.

However, Moody’s has also cautioned that fiscal deficit could overshoot in this case. In its rating downgrade note, Moody’s had already indicated that the sustained financial stress, weak job creation and the NBFC credit crunch had increased the chances of an entrenched weakening.

The immediate risk would be to the fiscal deficit as lower growth would mean lower government revenue generation with the pressure to sustain the fiscal stimulus in the post COVID situation.