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Second COVID wave poses downside risks to India s economic growth: S&P
S&P Global Ratings on Wednesday said the second wave of COVID infections poses downside risks to India s GDP and heightens the possibility of business disruptions. The second wave brings in uncertainty and a drawn-out COVID outbreak will impede India s recovery, it said. This may prompt us to revise our base-case assumption of 11 per cent growth over fiscal 2021-2022, particularly if the government is forced to reimpose broad containment measures, S&P said in a statement.
Last week another global rating agency Fitch had projected India s economic growth in current fiscal at 12.8 per cent, while Moody s Investors Service had earlier this month said that the second wave of COVID infections presents a risk to India s growth forecast, but a double digit GDP growth is likely in 2021 given the low level of activity last year.
Fitch affirms BBB- rating, says Covid surge may delay economic recovery
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Fitch affirms BBB- rating, says Covid surge may delay economic recovery
PTI / Updated: Apr 22, 2021, 21:47 IST
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People waiting in line infront of a test centre to get a Covid test done. India has been experiencing an unprecedented surge in Covid-19 cases currently. (Representative image)
NEW DELHI: Fitch Ratings on Thursday said the resurgence of Covid-19 infections may delay India s economic recovery, but won t derail it, as it kept the sovereign rating unchanged at BBB- with a negative outlook.
It projected a 12.8 per cent recovery in GDP in the fiscal year ending March 2022 (FY22), moderating to 5.8 per cent in FY23, from an estimated contraction of 7.5 per cent in 2020-21.
As economy recovers, survey shows 59 per cent firms in India intend to give salary increments in 2021
The study found that the southern market will lead in terms of new job opportunities with 37 per cent hiring, followed by the western zone with 33 per cent.
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MUMBAI: As the economy moves to a recovery path after a sharp decline last year amid the pandemic, a study has shown that 59 per cent of companies in India are intending to give salary increments to their employees in 2021.
According to staffing company Genius Consultants 10th Hiring, Attrition and Compensation Trend 2021-22 , with this impressive growth rate, the market is expected to be stable, and the companies will also relook at their business continuity strategy along with strengthening the workforce.
Most economists expect it to record double digit growth in the current fiscal year. (Representative image)
NEW DELHI: India is well armed to combat any downside risk posed by the recent surge in Covid cases, a finance ministry report said on Monday, asserting that the recovery is resilient with sustained improvement in majority of high-frequency indicators.
“After battling a historic pandemic in FY21, the Indian economy is poised to build back better and stronger as is reflected in the movement of several high-frequency indicators,” according to the monthly economic report of the finance ministry.
The report by the finance ministry’s department of economic affairs said instrumental in this resilient comeback will be a strong revival in investment growth supported by the Atmanirbhar Bharat Mission and a massive boost to infrastructure and capital expenditure provided for in the budget 2021-22.
Synopsis
Asset quality at the five largest rated public sector banks in India – State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank and Union Bank of India improved mildly in the first nine months of the year ending March 2021 despite an economic contraction exacerbated by the pandemic.
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Moody s Investors Service expects that India’s economy will recover in 2021, reducing the likelihood of a sharp deterioration in asset quality at the country’s public sector banks.
India’s economic recovery reduces the risk of a sharp deterioration in public sector banks’ mildly improving asset quality, Moody’s Investors Service said on Thursday. Though capital shortfalls for state-run banks will remain despite a likely government equity infusion, leaving banks vulnerable to unexpected shocks and restricting credit growth, it said.