Moody’s projection of India’s economic growth
On November 25, 2021, Moody’s Investors Service highlight that, India’s rising vaccination rate, high public spending and low interest rates are driving the positive outlook for corporate sector and non-financial companies.
Highlights
- Moody’s now projects that, India’s economic growth will rebound strongly.
- India’s GDP will expand by 9.3% in the financial year 2021-22.
- GDP will further expand by 7.9% in fiscal year 2023.
- In the report, Moody’s highlighted that, credit fundamentals are favourable for Indian companies on sustained economic recovery. It highlights that, earnings of rated companies will increase on high commodity process and strong consumer demand.
- Moody’s notes that, India’s steady progress on vaccination against the coronavirus will support sustained recovery in economic activity.
- Government’s growing spending on infrastructure will support demand for steel and cement.
- Furthermore, rising consumption, benign funding conditions and India’s push for domestic manufacturing will support new investments.
Moody’s Investors Service
Moody’s is the bond credit rating business of Moody’s Corporation. It represents the traditional line of business and historical name of the company. The rating agency provides international financial research on bonds, which are issued by commercial and government entities. Moody’s is among three big credit rating agencies, along with Standard & Poor’s and Fitch Group. In the year 2021, it was also included in the Fortune 500 list.
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Month: Current Affairs - November, 2021