S&P Global Ratings on Thursday lowered India’s growth forecast for the current fiscal year to 11.5 per cent from 9.5 per cent and warned that risks associated with the COVID epidemic were ahead. The agency downgraded growth forecasts after the second wave of Kovid-19 in April-May, when states imposed a lockdown that caused a sharp decline in economic activity.
“We have reduced the growth forecast for the current fiscal year from 11 per cent to 9.5 per cent announced in March,” S&P said. India’s growth rate for the next fiscal year ending March 23, 2023 may be 7.8 per cent.
Although vaccine delivery is expected to accelerate, about 15 percent of the population has received at least one dose of the vaccine so far, leaving further risks for the epidemic, S&P said. India’s economy shrank by 7.3 per cent in fiscal year 2020-21 and before that, the country has achieved four per cent growth in 2019-20.
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