Image Source: economictimes.indiatimes.com
CEA K V Subramanian on Thursday called that the impact of the second wave on the economy may not be very big. In the webinar conducted by the Finacial Times and The Indian Express, he said that there is more knowledge and experience from the past on how to handle the situation, and India going to national lockdown is very unlikely. India will achieve a growth rate of more than 7% in a couple of years and this year would be the exception due to the very low base.
India Ratings and Research revised down India's real GDP growth rate to 10.1% from 10.4%. The reason it put in is the second wave of COVID-19 but it will not be much harmful to the economy as the first one was. RBI also stated the second wave the major impediment to overcome this year.
SBI Research also downgrades the growth rate from 11% to 10.4% by citing the increasing restrictions across the states. SBI Research preferred to ramp up the vaccination speed instead of lockdowns which will create more restrictions.
Fitch Ratings have maintained, the negative outlook, 'BBB-' sovereign rating for India as the second wave creates the downgrade risks on the GDP growth in FY22. "We forecast a 12.8% recovery in GDP in the fiscal year ending March 2022 (FY22), moderating to 5.8% in FY23, from an estimated contraction of 7.5% in FY21".