Moody’s revises India’s FY21 GDP contraction to (-)10.6%

Moody's Investor Service on Thursday revised the contraction rate of India's FY21 GDP to (-) 10.6 per cent from an earlier estimate of (-) 11.5 per cent.

The revision comes days after the Centre announced new stimulus measures.

Besides, Moody's revised the forecast for the next financial year ending March 2022.

It now estimates a growth of 10.8 per cent from a rise of 10.6 per cent, which was predicted earlier.

"The latest measures (stimulus) aims to increase the competitiveness of India's manufacturing sector and create jobs, while supporting infrastructure investment, credit availability and stressed sectors," Moody's said.

"As such, they present potential upside to our current growth forecasts, a credit positive."

According to the ratings agency, consumer confidence in India remains relatively low amid a continued elevated number of daily new coronavirus cases, "although this has come down from a peak in September".