Moody’s Investors Service on Tuesday pegged India’s GDP growth at 9.3 per cent for the current fiscal ending March 2022 and 7.9 per cent for FY2023.

“The reimposition of lockdown measures along with behavioural changes on fear of contagion will curb economic activity, but we do not expect the impact to be as severe as during the first wave, the agency said. “We expect a decline in economic activity in the April-June quarter, followed by a rebound, resulting in real, inflation-adjusted GDP growth of 9.3 per cent in the fiscal year ending March 2022 and 7.9 per cent in fiscal 2022-23.”

India's economy contracted by 7.3 per cent in fiscal 2020-21. The pandemic, it said, will leave new economic scars and deepen pre-pandemic constraints. “Over the longer term, we expect the real GDP growth to average around 6 per cent,” it said.