Moody's Investors Service has lowered the contraction rate for India's gross domestic product to 10.6 per cent for 2020-21 from its earlier 11.5 per cent. It also revised upwards its expectation for GDP growth rate to 10.8 per cent for 2021-22 from the earlier 10.6 per cent.
The rating agency also said the stimulus measures announced last week by finance minister Nirmala Sitharaman were aimed at increasing manufacturing competitiveness and creating jobs, while supporting infrastructure investment, credit availability to stressed sectors.
"As such, they present potential upside to our current forecasts, a credit positive," Moody's said in a statement here.
The revisions in GDP came a bit over ten days ahead of the release of GDP data for the second quarter. India's economy contracted by an unprecedented 23.9 per cent in the first quarter.
Last week, Moody's cut the fall in GDP contraction rate to 8.9 per cent from earlier 9.6 per cent for the calendar year 2020. Similarly, India's GDP forecast for the calendar year 2021 was revised upwards to 8.6 per cent from 8.1 per cent earlier.
Moody's had attributed the reason behind better growth to the falling of coronavirus cases in the country.
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