India to be Among Fastest Growingin *21: S&P

But rating co warns new varlants of Covid-19 virus could lead to much larger second wave and pose risk to economic recovery
Our Bureau sustaining Indla's economic recovery
Back to Normal Fiscal defici over

growth
the medlum term as keeping up
rates wouldbe tricky he sald
New Delhi: India is likely to be among the S&Pprolects 10% 6% medlum term Slower than Flscal deflcit
fastest-growing emerging markets this ye erowth for lndla
ar, Standard & Poor's predlcted, even as In FY22
growth compares expected Flecal Woodsald S&P will be closely watching
theUSrating company sald new varlants
well to otner EMS
growth will consolldatlor India's medium-termgrowth with regard
to the country's sovereign rating, current
of the Covid-19 viruscould lead to amuch raiseconcerns path gradual ly at BBB-wltha stable outoOk.
arger second wave and pose a rlsk toeco-
Vacclne watan but well
on debt and "HIgher growth rates over the next few
nomic recovery. aosely Programme critical to
balanced years are golng tobecritt
The steep contractton In the currentf watchingin medlum term growth deficit cal to malntain and inan-
nancial yoar wil befdllowed by a bounce dla's vacine as new vlrus strains S&P has ce the government's hig-
back to 10% growth in FY22, putung Indla drlve: s&P emerge pegced
among thefastest growing conomles In heriscal dencltsanddebt
indla has sIL, an ace
Indla's stock," he sald.
2021, sald Andrew Wood, S&P directorof signinicant portion Combinedd S&P has pegged Indla's
of population will be up tssleeve and need
sovereten and Internatlonal publlcNnan vaccinated only by not rely onforeign
HE- centre and Combined Centre and sa
ceratingS state fisca te flscal deticit at 14.5% of
"WeseetheIndianeconomy growing at 6% end 2022 made vaccine aencltat GDP which is expected
Over the medium term, may be slghtlyhig LLUSTRATION ANIRBAN BORA
14.5% of GDP to drop to 11.6% In FY22
her, and that comparesvery well toemerglng and further to below 10%
markets al around," he sald at a webinar on ryjathsof othercountrles,Wood sad odsald dla, the world's largest producer ofvaccl InFY23.
S&P's Indla 2021 Outook onWxlnesday We ar also watching India s vaccina S&P
expects India to
vaccinate a slgnin nes, as an ace up the counry's sieevebe "This isgradualand reladvely slow flscal
Amuch larger second wave that could tloncampalgn very closelytosee how well cant porton of Its populatlon onlyby the cause "t's notgoing to have to rely upon fo- consol1datton, gtven how high that Mscal
emanatefom the newstralns of the Co India canmitlgatethe lurkine rtsks asso end of2r22 against about9milon cur relgn-manufacrured shots, which is ama defct 1s," Wood sad,adding thatS&P wo
vid-19 viruswouldbe a maprrisk to Indi clatet with the pNundemic aswell as new renuy which represents less than 1% of jor asset and differentiates India from uld be more concerned over the counury's
a's cconomy, bxased on the slgniflcant!m mon transmissIble and potentlaly resis thepopulatlon. Cconomies around the world." finances if the deflcit rematned indouble-
pactsimilareventshave hadon thercove sualnsof
1ant the SARS CoV2v1rus." Wo Wood counted the Serum Institute of In This would be a criucal component of dlgtsover the medtumtermn
 mkmhorrnanta Mamgmewt
NasAnaly CA 18 02
aua tcamic lime
lhus dau
Nus
ndia o b amms taskl Cmangin
/S2?_
Nes Muor ant
Cska Cnc mca leor
Ao a io t22á Sen Pu inq rdia int
aest pausine ms»f
A SatondLoave Couicd ipheditko Ond uting inkrs
Qoo H lndia IntY22
*L6a medi um

xand has peaged Indiels Conne d Casheano

a

. Pos
Cuil-a yisus bulel lesc o
murhauga SeCand Tve ad Po TElC occonemc

Aniiant ohm ula lkon ill ba Vaccinatto

anlu by Pnd a 2 2
Indsa
macd VGC cine