Moody?s pegs 9.3% GDP growth in current fiscal

New Delhi, November 25

Moody’s Investors Service on Thursday said India’s rising vaccination rate, low interest rates and higher public spending drive the positive outlook for corporate sector.

Moody’s projects India’s economic growth will rebound strongly, with GDP expanding 9.3% in the current fiscal ending March 2022, followed by 7.9% in fiscal 2023.

In a report, Moody’s said credit fundamentals are favourable for India’s companies on a sustained economic recovery and earnings of rated companies’ will rise on strong consumer demand and high commodity prices.

Credit fundamentals favourable

• Moody’s has projected that India’s economic growth will rebound strongly, with GDP expanding 9.3% in the current fiscal ending March 2022, followed by 7.9% in fiscal 2023
• The ratings agency said credit fundamentals are favourable for India’s companies on a sustained economic recovery and earnings of rated companies’ will rise on strong consumer demand and high commodity prices

India’s rising vaccination rate, stabilising consumer confidence, low interest rates and higher public spending underpin positive credit fundamentals for non-financial companies, it said.

“India’s steady progress on inoculation against the coronavirus will support a sustained recovery in economic activity. Consumer demand, spending and manufacturing activity are recovering following the easing of pandemic restrictions. These trends, including high commodity prices, will propel significant growth in rated companies’ EBITDA over the next 12-18 months,” Moody’s Analyst Sweta Patodia said.

Growing government spending on infrastructure will support demand for steel and cement. Meanwhile, rising consumption, India’s push for domestic manufacturing and benign funding conditions will support new investments. — PTI