India’s GDP likely to grow in double digits during 2021: Moody’s

Mumbai: Impact on India’s economic activity is expected to be less severe than that seen in 2020 due to the focus on “micro-containment zones” to deal with the current wave of Covid infections as opposed to a nationwide lockdown, said Moody’s Investors Service.

Besides, India’s very low coronavirus death count and “relatively very young population” also help mitigate risks.

“GDP is still likely to grow in the double digits in 2021 given the low level of activity in 2020,” said Moody’s Investors Service.

“Vaccination will be a key element in managing the second wave as the authorities balance virus management against maintaining economic activity. India began its vaccination drive in mid-January and had administered 100 million doses of the coronavirus vaccine as of April 10, becoming the fastest country to reach that threshold so far.”

However, a shortage of vaccines and India’s nearly 1.4 billion person population, which includes many people living in rural, more remote locations, could slow progress of the vaccine rollout, it said.

As of early April, around 7 per cent of the population had been inoculated. The vaccination drive was expanded to all citizens aged 45 years and above – about 25 per cent of the population as of 2019 – from April 1.

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