Strong demand, pace of jabs augur well: Moody’s

‘India’s GDP to grow 9.3% in FY22’

Moody’s Investors Service on Thursday said India’s rising vaccination rate, low interest rates and higher public spending drive the positive outlook for the 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 were favorable for India’s firms on a sustained economic recovery and earnings of rated companies would 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 firms, it said.

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

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