Moody’s Analytics has projected India’s GDP to grow by 12% in 2021. In an earlier estimate in November 2020, it had said India’s GDP will grow at 9% in the calendar year. In an updated projection released it said India’s near-term prospects have turned more favourable following a stronger than expected December quarter, when GDP grew by 0.4% over the year following a 7.5% contraction in the September quarter. Domestic and external demand has been on the mend since the easing of restrictions, which has led to improved manufacturing output in recent months.
Moody’s Analytics said it expects private consumption and non-residential investment to pick up in the next few quarters and strengthen domestic demand revival in 2021. Earlier this month, Moody’s Investors Service, which operates independently of its sister organization Moody’s Analytics, had projected the Indian economy to grow 13.7% in FY22.