Investor Moody’s services have raised the estimated GDP growth for India for the current calendar year to 9.5 percent from 7 percent, quoting a stronger economic recovery of estimates of the national locking in 2020 and the second wave of Pandemic Covid-19 in mid -2021.

Forecasts of GDP growth for 2023 have been maintained at 5.5 percent.

The calendar year forecasts were translated into a growth projection of 8.4 percent for FY23 and 6.5 percent for FY24. The FY23 projection is 60 basis points higher than the forecast of the Bank of India (RBI) reserves of 7.8 percent. However, the central government’s economic survey for 2021-22 estimates that the level of GDP growth is only 8-8.5 percent for the next financial year, with a budget of 2022 assuming the Nominal GDP growth rate of 11.1 percent.

“Sales tax collection, retail and PMI activities (purchase manager index) suggest solid momentum. However, the high oil price and supply distortion remains an obstacle to growth,” said Moody on February 23 in the update for the Global Macro 2022-23 report. .

“Just as in many other countries, recovery lags behind intensive contact sectors, but must be taken as a wave of omicrons subside. With most of the remaining limitations now being appointed with an increase in Covid situations, including the reopening of the school and college for instructions In-people in various states, this country is on its way to normal, “Moody added.

The rating agency said that the estimated growth of 9.5 percent for 2022 was assumed to be “relatively controlled sequential growth rates”. Thus, he saw some reverse potential.

This adds that 2022 budgets prioritize growth, while RBI monetary policy still supports.