Moody’s Investors Service has revised India’s GDP forecast upwards for calendar year 2020 to -8.9% contraction from -9.6% contraction forecasted earlier. Similarly, India’s GDP forecast for calendar year 2021 has been revised upwards to 8.6% from 8.1% projected earlier. GDP forecasts are for calendar years. The Indian economy had contracted a hefty 23.9% in the April-June quarter and is seen contracting over 10% in the fiscal year to March 2021 as a result of a long and strict nationwide lockdown due to the coronavirus pandemic. Moody’s expects pandemic management will continue to improve over time, thereby reducing fear of contagion and allowing for a steady normalization of social and economic activity. As a result, the virus is expected to become a less important macroeconomic concern throughout 2021 and 2022, it says.

(Live Mint)