Vigour of India’s revival surprising: S&P
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S&P Global Ratings on Tuesday pared down its projection about the extent of contraction Indian economy will see in FY21 to 7.7% from 9% dip estimated earlier, holding that it is surprised by the vigour of economic recovery in Asia's third largest economy, especially given the tepid policy response from the government underpinning it.
The rating agency said rising demand and falling infection rates have tempered its expectation of the pandemic’s hit on the Indian economy. “Our revision reflects a faster-than-expected recovery in the quarter through September. India (is) learning to live with the virus, even though the pandemic is far from defeated. Reported cases have fallen by more than half from peak levels, to about 40,000 per day. The feared resurgence following the recent holiday season has yet to materialize. People are moving around much more, with Google data suggesting mobility in retail locations is 25%-30% below pre-covid levels in recent months. This compares with over 70% below normal in the quarter through June 2020," S&P said.