Moody’s Investors Service on Thursday said India’s weak fiscal position will remain a key credit challenge in 2021 with a debt-to-GDP ratio above its peers. “Wide fiscal deficits combined with lower real and nominal GDP growth over the medium term will constrain the government’s ability to reduce its debt burden," said Gene Fang, associate managing director, Moody’s. The 15th Finance Commission has recommended bringing the public debt to GDP ratio down from 89.8% of GDP in FY21 to 85.7% of GDP in FY26. It expects India’s GDP to contract 7% in FY21 and bounce back in FY22 to grow at 13.7%. The Economic Survey has projected GDP growth at 11% for FY22 while RBI has pegged it at 10.5%.

Source: Mint February 25, 2021 13:07 UTC