InvestorQ : With the latest GDP downgrade of India for FY22 by Oxford, do you see more downgrades?
Debbie Mascarenhas made post

With the latest GDP downgrade of India for FY22 by Oxford, do you see more downgrades?

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Arti Chavan answered.
3 weeks ago
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Actually, Oxford Economics just lowered its GDP growth projection for India from 10.2% to 9.1%. This was largely on expected lines and is the trend that is visible across most brokers, research and rating agencies. This is due to concerns over resurgence of the COVID 2.0, extended lockdowns and macro debt concerns due to rising Government Debt / GDP levels.

One immediate concern for many of these agencies is that India is likely to reach the vaccine threshold only in end of August 2021. Hence, lockdowns may continue for longer and GDP growth would be impacted. Indian economy has been betting on a rapid return to high growth to offset COVID lag effect. However, at this point, further downgrades look unlikely.

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