Moody’s made this improvement in GDP forecast after the announcement of the third stimulus package by the central government. Moody’s said, the relief package of Rs 2,65,000 crore by Modi government last week will improve the manufacturing sector of the country and it will grow rapidly. The agency said that the government’s introduction of PLI scheme for 10 sectors will also strengthen the manufacturing sector, which contributes more than 15% of the country’s GDP.
Reforms in GDP forecast due to this
All rating agencies say that the Indian economy will witness a record boom in the second half of this financial year. While the Purchasing Managers’ Index (PMI) reached a 13-year record in October, breaking a 13-year record for growth, the Industrial Production Index (IIP) was up 0.2% in September for the first time in 6 months. Prior to Moody’s, Goldman Sachs, the rating agency, had projected a minus 10.3% growth in the Indian economy, improving India’s GDP forecast for FY2021. Whereas, in September, the agency had projected a decline of -14.8% in the Indian economy.
GDP to improve 10.9%: Goldman Sachs
Goldman Sachs said in its report that GDP is projected to improve 13% in the next financial year ie 2021-22. Earlier in September, the agency said that India’s GDP will improve by 10.9% in the next financial year. Rating agency Goldman Sachs says that the Indian economy will grow the fastest in the world in the next financial year.