S&P Global Ratings has released its report on emerging markets titled “Financial Conditions Reflect Optimism, Lockdown Fatigue Emerges“. In this reported, the rating agency forecasted Indian economy to shrink by 5% in fiscal year 2020-21. The report stated that the fiscal stimulus worth 1.2% of GDP is not sufficient to provide significant growth support.
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The S&P Global Ratings also expects India’s growth to rebound to 8.5% in the fiscal year 2021-22. It has also projected India’s growth to be 6.5% in the fiscal year 2022-23.
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